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NEW QUESTION: 1
In evaluating a capital budget project, the use of the net present value model is generally not affected by
the:
A. Amount of added working capital needed for operations during the term of the project.
B. Initial cost of the project.
C. Amount of the project's associated depreciation tax allowance.
D. Method of funding the project.
Answer: D
Explanation:
Choice "a" is correct. The method of funding the project has no effect on the net present value model.
NPV uses a hurdle rate to discount cash flows. If the NPV is positive, the project is acceptable. The
method of financing the project, and the cost, are independent of the process of screening the project for
acceptability. Choice "b" is incorrect. The initial cost is one of the most important items in the calculation of
NPV. Choice "c" is incorrect. Added working capital requirements and salvage value affect cash flow. All
cash flows are used in the NPV model. Choice "d" is incorrect. The tax depreciation allowance will provide
a "tax shield" or tax savings that impacts cash flow and must be considered in NPV analysis.

NEW QUESTION: 2
What would BEST define a covert channel?
A. An undocumented backdoor that has been left by a programmer in an operating system
B. A communication channel that allows transfer of information in a manner that violates the system's security policy.
C. A trojan horse.
D. An open system port that should be closed.
Answer: B
Explanation:
A covert channel is a way for an entity to receive information in an unauthorized manner. It is an information flow that is not controlled by a security mechanism. This type of information path was not developed for communication; thus, the system does not properly protect this path, because the developers never envisioned information being passed in this way.
Receiving information in this manner clearly violates the system's security policy. The channel to transfer this unauthorized data is the result of one of the following conditions:*
Oversight in the development of the product
* Improper implementation of access controls
* Existence of a shared resource between the two entities
* Installation of a Trojan horse
The following answers are incorrect:
An undocumented backdoor that has been left by a programmer in an operating system is incorrect because it is not a means by which unauthorized transfer of information takes place. Such backdoor is usually referred to as a Maintenance Hook.
An open system port that should be closed is incorrect as it does not define a covert channel.
A trojan horse is incorrect because it is a program that looks like a useful program but when you install it it would include a bonus such as a Worm, Backdoor, or some other malware without the installer knowing about it.
Reference(s) used for this question:
Shon Harris AIO v3 , Chapter-5 : Security Models & Architecture
AIOv4 Security Architecture and Design (pages 343 - 344)
AIOv5 Security Architecture and Design (pages 345 - 346)

NEW QUESTION: 3
Which of the following could decrease outstanding capital stock?
A. The exercise of warrants.
B. All of these answers.
C. The payment of a cash dividend.
D. The purchase of treasury stock.
E. The retention of earnings.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Only the purchase of treasury stock would cause a firm's capital stock account to decrease because the firm acquires outstanding shares and immediately retires these shares.

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