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E20-011 PDF DEMO:
QUESTION NO: 1
What are the three key elements of business value analysis?
A. Availability, reliability, serviceability
B. Increased revenue, cost avoidance, reduced costs
C. Regulatory requirements, SLA penalties, competitive offerings
D. Storage performance, throughput, bandwidth
Answer: B
QUESTION NO: 2
Click the Exhibit button.
Based on the chart, when is the break-even point for the investment?
A. End of month 5
B. End of month 6
C. End of month 12
D. Beyond the first year
Answer: B
QUESTION NO: 3
What represents a capital cost savings?
A. Improved asset utilization and recovery of stranded assets
B. Number of staff/managed TB of storage
C. Revenue retention and customer loyalty
D. Reduction in regulatory penalties
Answer: A
QUESTION NO: 4
The results of an SRM Implementation Study are:
1. Software license costs: $150,000
2. Software customization and installation: $50,000 The current projection of a new storage hardware requirement over the next 5 years is estimated at 85 TB. SRM implementation will reduce the storage requirements to 55 TB. The cost of storage is $50,000 per TB. The 3-year total cost of ownership (TCO) without SRM implementation = 85*(50,000) The 3-year total cost of ownership (TCO) with SRM implementation = 150,000 + 50,000 + 55*(50,000) What is the return on investment (ROI) with the SRM implementation?
A. 6.5%
B. 65%
C. 650%
D. 6,500%
Answer: B
QUESTION NO: 5
A company must decide whether to introduce a new product line. The new product will have startup costs, operational costs, and incoming cash flows over 5 years. This project will have an immediate (T=0) cash outflow of $100,000 that may include machinery and employee training costs. Other cash outflows for years 1-5 are expected to be $5,000 per year. Cash inflows are expected to be $30,000 per year for years 1-5. The required rate of return is 10 percent. The present value (PV) can be calculated for each year: T=0 -$100,000 / 1.100 = -$100,000 PV T=1 ($30,000 - $5,000)/ 1.101 = $22,727 PV T=2 ($30,000
- $5,000)/ 1.102 = $20,661 PV T=3 ($30,000 - $5,000)/ 1.103 = $18,783 PV T=4 ($30,000 - $5,000)/
1.104 = $17,075 PV T=5 ($30,000 - $5,000)/ 1.105 = $15,523 PV What is the recommendation to the company?
A. The company should invest in the project since it will gain $125,000 in profit.
B. The company should not invest in the project. It will not see any gain from the investment.
C. The project will break even and it should not be considered.
D. The project will break even and should be considered.
Answer: B
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Updated: May 27, 2022