We can design and implement a perfect emulator that behaves exactly like the system being emulated (e.g., Windows on Intel x86) such that malware cannot tell it is being run on the emulator. 

Static analysis does not produce false positives, i.e., its report of program security vulnerabilities is correct. 

A company plans to spend $3,700,000 on equipment. The equipment will be depreciated using the MACRS method and a 5-year recovery period. The company uses a study period of 6 years for these types of purchases and plans to keep the equipment indefinitely. Gross income is expected to be $900,000 in year 1 and increase by $170,000 each year. Annual operating expenses are expected to be $50,000 in year 1 and increase by $70,000 each year. The company’s combined marginal tax rate is 39%. A portion of the after-tax cash flow analysis is shown below. Year GI OE CFBT Dt TI Taxes CFAT 0 −$3,700,000 1 $807,100 2 $1,041,260 3 $917,556 4 $867,734 5 $1,580,000 $330,000 (a) $426,240 (b) (c) (d) 6 $906,617 Round to nearest dollar. For Year 5, what is the cash flow before taxes, CFBT? $ For Year 5, what is the taxable income, TI? $ For Year 5, what is the amount of taxes, Taxes? $ For Year 5, what is the cash flow after taxes, CFAT? $ What is the after-tax Rate of Return over the study period? %  (one decimal) If the company’s MARR is 15%, should they invest in this equipment, YES or NO?

Two projects are under consideration. Both projects have a life of 50 years. Estimates are given below. Use an annual interest rate of 10% for your analysis.   Project A Project B Initial Investment $15,000 $10,000 Present Worth of Benefits $32,200 $21,800 Present Worth of O&M Costs $3,970 $1,980 (Round ratios to 2 decimal places) What is the Benefit-Cost ratio for Project A?   What is the Benefit-Cost ratio for Project B?   Based on a Benefit-Cost analysis, which Project should be selected, A or B?   

To reduce process lead time, a manufacturer is analyzing a proposed project. The company’s market interest rate is %. The general inflation rate over the life of the project is expected to be %. What is the inflation-free interest rate that should be used in the analysis? (Answer as a percentage, to two decimal places.)

A manufacturer plans to spend $3,700,000 on equipment. The equipment will be depreciated using the MACRS method with a 5-year recovery period. The manufacturer plans to keep the equipment indefinitely and uses a study period of 6 years for these types of purchases. Annual operating expenses are expected to be $50,000 in year 1 and increase by $70,000 each year. Gross income is expected to be $900,000 in year 1 and increase by $170,000 each year. A portion of the after-tax cash flow analysis is shown below. The manufacturer ’s combined marginal tax rate is 39%. Year GI OE CFBT Dt TI Taxes CFAT 0 −$3,700,000 1 $807,100 2 $1,070,000 $120,000 (a) $1,184,000 (b) (c) (d) 3 $917,556 4 $867,734 5 $928,734 6 $906,617 Round to nearest dollar. For Year 2, what is the cash flow before taxes, CFBT? $ For Year 2, what is the taxable income, TI? $ For Year 2, what is the amount of taxes, Taxes? $ For Year 2, what is the cash flow after taxes, CFAT? $ What is the after-tax Rate of Return over the study period? %  (one decimal) If the company’s MARR is 11%, should they invest in this equipment, YES or NO?

Next year the inflation rate is expected to be %, and it is expected to be % for the following year. What is the expected average inflation rate over this 2-year period? (Answer as a percentage, to two decimal places.)

A cherry processing facility in Northern Michigan processes both sweet and tart cherries for local growers. The facility needs to install a new cherry pitter. An analyst recently obtained the following estimates. Preliminary feasibility study (this year, year 0) $4,000 Purchase & install system (this year, year 0) $240,000 Annual operating costs (years 1-8) $14,000 in year 1, increasing by $3,000 each year Salvage value (year 8) $24,000 Other phase-out activities (year 8) $3,000 The cherry pitter would be used for eight years. The facility uses a before-tax MARR of 10% per year for these types of decisions. What is the capital recovery (CR) cost of the system? What is the annual equivalent worth of the operating costs? What is the annual equivalent cost of this project?

A small bakery needs to purchase a planetary floor mixer (with guards and accessories) and must decide between two models. The bakery evaluates kitchen equipment over a 4-year study period. Estimates for the two models are given below. The salvage values are not expected to change. Model A Model B First cost, $ 15,000 16,500 Annual maintenance & operating costs, $ per year 3,400 1,700 Salvage value 1,500 1,650 Life, years 5 8 The effective annual interest rate is 10%. What is the present worth of the cash flow for Model A that should be used in the analysis? The net present worth of the cash flows for Model B is −$20,760. Based on a present worth analysis, which model should be selected?

You are analyzing an investment that is expected to generate the following cash flows, in actual dollars: Year, n NCF, Actual Dollars 0 −$,000 1 ,000 2 ,000 3 ,000 Over this timeframe, the general inflation rate ( f ) is expected to be %. Your company’s market interest rate is %. What is the equivalent present worth of this investment at Year 0? (Round answer to nearest dollar.)