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  • Exam Code: HMJ-1216
  • Exam Name: Job Management Partner 1 Certified Professional Backup Management (V12)
  • Version: V12.75     Q & A: 69 Questions and Answers

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NEW QUESTION: 1
In TOGAF, what level of governance is responsible for defining architecture processes?
A. architecture governance
B. IT governance
C. corporate governance
D. technology governance
E. implementation governance
Answer: A

NEW QUESTION: 2
Doherty Industries wants to invest in a new computer system. The company only wants to invest in one system, and has narrowed the choice down to System A and System B System A requires an up-front cost of $100,000 and then generates positive after-tax cash flows of $60,000 at the end of each of the next two years. The system can be replaced every two years with the cash inflows and outflows remaining the same. System B also requires an up-front cost of $100,000 and then generates positive after-tax cash flows of $48,000 at the end of each of the next three years. System B can be replaced every three years, but each time the system is replaced, both the cash inflows and outflows increase by 10 percent. The company needs a computer system for the six years, after which time the current owners plan on retiring and liquidating the firm. The company's cost of capital is 11 percent. What is the NPV (on a six-year extended basis) of the system, which creates the most value to the company?
A. $38,523.43
B. $17,298.30
C. $103,065.82
D. $31,211.52
E. $22,634.77
Answer: D
Explanation:
Explanation/Reference:
Explanation:
To find the NPV of the system we must use the replacement chain approach.
Time System ASystem B
0-100,000-100,000
160,00048,000
260,000 - 100,000 = -40,00048,000
360,00048,000-110,000 =-62,000
460,000 - 100,000 = -40,00052,800
560,00052,800
660,00052,800
Use the CF key to enter the cash flows for each period. I/YR = 11. This should give the following NPVs:
NPV(A) = $6,796.93.
NPV(B) = $31,211.52.
Computer system B creates the most value for the firm.

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