Answer: d. Entire initial investment will not be recovered.
Explanation:
The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an investment of $20 million and made $5 million every year, the Payback period would be 4 years.
Now, if the amount of time it will take to recover an investment is longer than the expected amount of time the project will run (expected useful life) then logically speaking that would mean that the Investment would not be entirely recovered because the project will be done before it can pay off the investment hence Option D is correct.
The most important phase of the SDLC is the requirement gathering and analysis phase because this is when the project team begins to understand what the customer wants from the project.
Answer: <em>True</em>
Explanation:
A project team is referred to as a team whose members usually belong to different groups,i.e.one with technical background and others with non-technical background also play different roles and have functions. A project team can be further divided into parts or sub-teams. Usually, these teams are used for a defined period.
Answer:
The profit is $12,500
Explanation:
The profit on the contract can be computed using the formula below:
profit/loss on the contract=(forward price-spot rate)*volume of currency sold
forward price is 1 euro to $1.20
spot price 1 euro to $1.10
volume of currency sold is Euros 125,000
profit/loss on the contract=($1.20-$1.10)*125,000
=$12,500
Invariably the trader sold each US dollar $0.10 more than the spot rate ($1.20-$1.10),when that is multiplied the volume of Euros sold,it gives $12,500 in profit.
This implies that the buyer could have bought the currency cheaper on contract date
