A Local University, Connected to Internet2, Employs Several Professors in Its

question 159

Multiple Choice

A local university, connected to Internet2, employs several professors in its school of engineering that are part of a research project that makes extremely heavy use of the bandwidth this connection provides. In fact, the engineering professors would like to get even more bandwidth. Given the way its designers set up Internet2, the researchers at the university

• A) are out of luck. One drawback of Internet2 is that, unlike the regular Internet, the technology of Internet2 can allocate only a fixed amount of bandwidth to each user.
• B) may be able to obtain more bandwidth, but only if the university is willing to pay for it.
• C) must petition the Internet2 Usage Committee and obtain approval.
• D) can install a simple bandwidth amplification card in each computer that compresses data, thus allowing it to flow more rapidly.

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Definitions:

Payback

The period of time required for the return on an investment to "pay back" the initial capital outlay.

Cost of Capital

Cost of capital refers to the minimum rate of return a company must earn on its investments to satisfy its investors, creditors, and other providers of capital.

NPV

Net Present Value, a method for assessing the worth of a project or investment by applying a discount rate to future cash flows to ascertain their current value.

Crossover Rate

The rate at which two projects have the same net present value, used in capital budgeting to compare the attractiveness of different projects.