When Using the Net Present Value Method to Compare Keeping

question 51

Multiple Choice

When using the net present value method to compare keeping an old building or disposing of it and acquiring a new building, the current cash residual value of the old building should be

• A) a subtraction from the price paid for the new building.
• B) viewed as a cash flow.
• C) an addition to the price paid for the new building.
• D) irrelevant to the decision.

Distinguish between cash operating costs and non-operating costs in investment appraisal.

Evaluate investment projects based on various financial metrics including IRR, NPV, and simple rate of return.

Understand the concept of human error in cybersecurity practices.

Identify the role and impact of social engineering in compromising information security.

---

Definitions:

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period of time.

Health Care Costs

The expenses associated with medical treatment, including the costs of hospitalization, medications, preventive care, and medical devices.

Per Capita GDP

Gross Domestic Product per person, a measure comparing the economic output of a country relative to its population size.

Personal Disposable Income

Personal disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for.