The Golden Goose is considering a project with an initial cost of $46,The project will produce cash inflows of $10,000 a year for the first two years and $12,000 a year for the following three years. What is the payback period?
  • 5.84 years
  • 4.23 years
  • 3.21 years
  • 6.32 percent
What is the IRR of the following set of cash flows? (-26,300)
  • 17.82 percent
  • 15.81 percent
  • 6.32 percent
  • 11.49 percent
Discounted cash flow valuation is the process of discounting an investment's:
  • Profitability index
  • future cash flows.
  • 14.09 percent
  • Net present value
An investment has conventional cash flows and a profitability index of 1.Given this, which one of the following must be true?
  • The net present value of Project A equals that of Project B, but generally does not equal zero.
  • No, because the AAR is less than 16 percent
  • The investment is mutually exclusive with another investment under consideration.
  • The net present value is equal to zero.
Jefferson International is trying to choose between the following two mutually exclusive design projects:
  • Positive net present value
  • Project B; Project A; Project A
  • Project B, because it has the higher net present value
  • Profitability index less than 1.0
You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted at a 12 percent discount rate.
  • 25.34 percent
  • 14.02 percent; A
  • 6.32 percent
  • 10.53 percent
The net present value of an investment represents the difference between the investment's:
  • Unconventional cash flows
  • Internal rate of return
  • Positive net present value
  • cost and its market value.
Chasteen, Inc. is considering an investment with an initial cost of $185,000 that would be depreciated straight-line to a zero book value over the life of the project. The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years. What is the internal rate of return?
  • 16.51 percent
  • 25.34 percent
  • 7.56 percent
  • 6.94 percent
The internal rate of return is unreliable as an indicator of whether or not an investment should be accepted given which one of the following?
  • No, because the project's rate of return is 7.78 percent
  • Unconventional cash flows
  • If the internal rate of return equals the required return, the net present value will equal zero.
  • The investment is mutually exclusive with another investment under consideration.
Joe and Rich are both considering investing in a project with the following cash flows. Joe is content earning a 9 percent return, but Rich desires a return of 16 percent. Who, if either, should accept this project?
  • Net present value
  • Both Joe and Rich
  • No, because the IRR is 12.51 percent
  • 7.56 percent
What is the net present value of the following cash flows if the relevant discount rate is 8.0 percent?
  • Positive NPV
  • $4,529.59
  • $4,518.47; -$321.76
  • $1,869.69
The Black Horse is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by $6,500 in yearThe cost of the project is $38,What is the profitability index if the discount rate is 7 percent?
  • 22.56
  • $59.50
  • 0.96
  • 7.56 percent
You were recently hired by a firm as a project analyst. The owner of the firm is unfamiliar with financial analysis and wants to know only what the expected dollar return is per dollar spent on a given project. Which financial method of analysis will provide the information that the owner requests?
  • Project B, because it has the higher net present value
  • Profitability index
  • The project never pays back.
  • Project A, because it has the higher net present value
Soft and Cuddly is considering a new toy that will produce the following cash flows. Should the company produce this toy if the firm requires a 15 percent rate of return?
  • No, because the AAR is less than 16 percent
  • No, because the project's rate of return is 7.78 percent
  • No, because the IRR is 12.51 percent
  • No, because the project's rate of return is 10.21 percent
Today, Sweet Snacks is investing $491,000 in a new oven. As a result, the company expects its cash flows to increase by $64,000 a year for the next two years and by $98,000 a year for the following three years. How long must the firm wait until it recovers all of its initial investment?
  • The project never pays back.
  • No, because the AAR is less than 16 percent
  • The profitability index will equal 1.0.
  • Net present value
Which one of the following indicators offers the best assurance that a project will produce value for its owners?
  • The profitability index will equal 1.0.
  • Positive NPV
  • Profitability index less than 1.0
  • Net present value
The reinvestment approach to the modified internal rate of return:
  • The net present value is equal to zero.
  • The firm should increase in value each time the firm accepts a new project.
  • compounds all of the cash flows, except for the initial cash flow, to the end of the project.
  • The investment is mutually exclusive with another investment under consideration.
You are making a $120,000 investment and feel that a 20 percent rate of return is reasonable given the nature of the risks involved. You feel you will receive $48,000 in the first year, $54,000 in the second year, and $56,000 in the third year. You expect to pay out $12,000 as an additional investment in the fourth year. What is the net present value of this investment given your expectations?
  • $3,374.11
  • -$15,879.63
  • -$5,433.67
  • 17.82 percent
A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500, and finally in year 4, $4,The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?
  • $3,374.11
  • $8,166.19
  • -$152,232
  • 8.26 percent
Which one of the following methods of analysis ignores cash flows?
  • Positive net present value
  • Average accounting return
  • Internal rate of return that exceeds the required return
  • The payback method is biased toward short-term projects.
You are considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which project should you accept and what is the best reason for that decision? (-46,000)
  • 13.28 percent; B
  • 16.51 percent
  • Project A, because it has the higher net present value
  • No, because the project's rate of return is 10.21 percent
The profitability index reflects the value created per dollar:
  • Positive NPV
  • 3.21 years
  • Discount rate
  • invested.
Empire Industries is considering adding a new product to its lineup. This product is expected to generate sales for four years after which time the product will be discontinued. What is the project's net present value if the firm wants to earn a 13 percent rate of return?
  • $59.50
  • $3,374.11
  • 3.17 years
  • $4,312.65
The possibility that more than one discount rate can cause the net present value of an investment to equal zero is referred to as:
  • Unconventional cash flows
  • Discount rate
  • multiple rates of return.
  • Internal rate of return
Which one of the following indicates that a project is definitely acceptable?
  • Profitability index greater than 1.0
  • Internal rate of return
  • Discount rate that results in a zero net present value for the project
  • Profitability index less than 1.0
Which one of the following is true if the managers of a firm accept only projects that have a profitability index greater than 1.5?
  • The profitability index will equal 1.0.
  • If the internal rate of return equals the required return, the net present value will equal zero.
  • The firm should increase in value each time the firm accepts a new project.
  • Modified internal rate of return
The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to:
  • initial
  • $1,587.61
  • $39.80
  • $4,312.65
Which one of the following is an indicator that an investment is acceptable?
  • Internal rate of return that exceeds the required return
  • Discount rate that results in a zero net present value for the project
  • Average accounting return
  • Internal rate of return
The net present value profile illustrates how the net present value of an investment is affected by which one of the following?
  • $7,976.70
  • Discount rate
  • 14.35 percent
  • Discount rate that results in a zero net present value for the project
An investment has an initial cost of $300,000 and a life of four years. This investment will be depreciated by $60,000 a year and will generate the net income shown below. Should this project be accepted based on the average accounting rate of return (AAR) if the required rate is 9.5 percent? Why or why not?
  • The project never pays back.
  • Yes, because the AAR is greater than 9.5 percent
  • decreases as the required rate of return increases.
  • Project A, because it has the higher net present value
Consider the following two mutually exclusive projects: Whichever project you choose, if any, you require a 14 percent return on your investment. If you apply the payback criterion, you will choose Project ______; if you apply the NPV criterion, you will choose Project ______; if you apply the IRR criterion, you will choose Project _____; if you choose the profitability index criterion, you will choose Project ___. Based on your first four answers, which project will you finally choose?
  • 7.56 percent
  • 6.94 percent
  • B; A; B; A; A
  • 10.22 percent
Molly is considering a project with cash inflows of $918, $867, $528, and $310 over the next four years, respectively. The relevant discount rate is 10 percent. What is the net present value of this project if it the start-up cost is $2,100?
  • $59.50
  • $8,166.19
  • 2.85 years
  • -$15,879.63
If an investment is producing a return that is equal to the required return, the investment's net present value will be:
  • Positive NPV
  • $39.80
  • The net present value is equal to zero.
  • zero
The net present value:
  • The investment is mutually exclusive with another investment under consideration.
  • decreases as the required rate of return increases.
  • measures profitability rather than cash flow.
  • The payback method is biased toward short-term projects.
Which one of the following is most closely related to the net present value profile?
  • Profitability index
  • Internal rate of return that exceeds the required return
  • Average accounting return
  • Internal rate of return
What is the payback period for a $28,500 investment with the following cash flows?
  • 3.65 years
  • 3.17 years
  • $3,374.11
  • $4,529.59
Mary has just been asked to analyze an investment to determine if it is acceptable. Unfortunately, she is not being given sufficient time to analyze the project using various methods. She must select one method of analysis and provide an answer based solely on that method. Which method do you suggest she use in this situation?
  • 2.85 years
  • Net present value
  • 13.28 percent; B
  • 17.82 percent
The average accounting return:
  • measures profitability rather than cash flow.
  • compounds all of the cash flows, except for the initial cash flow, to the end of the project.
  • Yes, because the AAR is greater than 9.5 percent
  • decreases as the required rate of return increases.
The payback method of analysis ignores which one of the following?
  • Time value of money
  • Internal rate of return
  • future cash flows.
  • Profitability index
Which one of the following defines the internal rate of return for a project?
  • Internal rate of return
  • Discount rate that results in a zero net present value for the project
  • Profitability index greater than 1.0
  • If the internal rate of return equals the required return, the net present value will equal zero.
An investment has an initial cost of $3.3 million. This investment will be depreciated by $900,000 a year over the three-year life of the project. Should this project be accepted based on the average accounting rate of return if the required rate is 10.0 percent? Why or why not?
  • Internal rate of return and net present value
  • No, because the AAR is less than 10.0 percent
  • The profitability index will equal 1.0.
  • No, because the AAR is less than 16 percent
Which one of the following methods of analysis is most similar to computing the return on assets (ROA)?
  • Internal rate of return
  • Positive net present value
  • average accounting return.
  • Average accounting return
The average net income of a project divided by the project's average book value is referred to as the project's:
  • cost and its market value.
  • $4,518.47; -$321.76
  • average accounting return.
  • Average accounting return
A proposed project requires an initial cash outlay of $849,000 for equipment and an additional cash outlay of $48,500 in year 1 to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 13 percent? Round your answer to the nearest whole dollar.
  • -$152,232
  • 2.85 years
  • -$15,879.63
  • 5.92 years
Miller and Sons is evaluating a project with the following cash flows:
  • 8.26 percent
  • 8.54 percent; 7.38 percent; 8.59 percent
  • Profitability index greater than 1.0
  • 9.55 percent or less
Woodcrafters requires an average accounting return (AAR) of at least 17 percent on all fixed asset purchases. Currently, it is considering some new equipment costing $178,This equipment will have a four-year life over which time it will be depreciated on a straight-line basis to a zero book value. The annual net income from this equipment is estimated at $10,100, $10,300, $17,900, and $19,600 for the four years. Should this purchase occur based on the accounting rate of return? Why or why not?
  • No, because the AAR is less than 10.0 percent
  • No, because the IRR is 12.51 percent
  • No, because the AAR is less than 17 percent
  • Yes, because the IRR is 12.74 percent
You are considering an equipment purchase costing $187,This equipment will be depreciated straight-line to zero over its three-year life. What is the average accounting return if this equipment produces the following net income?
  • 16.51 percent
  • 13.28 percent; B
  • 15.81 percent
  • 25.34 percent
Auto Detailers is buying some new equipment at a cost of $228,This equipment will be depreciated on a straight-line basis to a zero book value its eight-year life. The equipment is expected to generate net income of $36,000 a year for the first four years and $22,000 a year for the last four years. What is the average accounting rate of return?
  • 10.53 percent
  • 11.49 percent
  • 25.34 percent
  • 13.15 percent: B
Which one of the following is the primary advantage of payback analysis?
  • Average accounting return
  • Payback
  • Positive NPV
  • Ease of use
Both Projects A and B are acceptable as independent projects. However, the selection of either one of these projects eliminates the option of selecting the other project. Which one of the following terms best describes the relationship between Project A and Project B?
  • $8,166.19
  • Net present value
  • Mutually exclusive
  • 10.53 percent
Which one of the following indicates that a project should be rejected?
  • Modified internal rate of return
  • Internal rate of return
  • Profitability index less than 1.0
  • Profitability index greater than 1.0
You are considering the following two mutually exclusive projects. What is the crossover point?
  • 16.51 percent
  • $59.50
  • 22.56
  • 0.96
A project has the following cash flows. What is the payback period?
  • 8.26 percent
  • 5.92 years
  • invested.
  • 2.60 years
Which one of the following methods of analysis ignores the time value of money?
  • Internal rate of return that exceeds the required return
  • Positive NPV
  • Average accounting return
  • Payback
The Flour Baker is considering a project with the following cash flows. Should this project be accepted based on its internal rate of return if the required return is 11 percent?
  • No, because the project's rate of return is 7.78 percent
  • The firm should increase in value each time the firm accepts a new project.
  • Project B, because it has the higher net present value
  • No, because the AAR is less than 17 percent
If a project with conventional cash flows has a profitability index of 1.0, the project will:
  • have an internal rate of return that equals the required return.
  • cost and its market value.
  • Modified internal rate of return
  • If the internal rate of return equals the required return, the net present value will equal zero.
You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted if the discount rate is 14 percent.
  • Project B, because it has the higher net present value
  • 13.15 percent: B
  • 13.28 percent; B
  • Net present value
Payback is best used to evaluate which type of projects?
  • Net present value
  • Time value of money
  • 14.09 percent
  • Low-cost, short-term
What is the net present value of the following set of cash flows at a discount rate of 7 percent? At 20 percent?
  • $2,500; -$8,665.07
  • $3,374.11
  • $4,518.47; -$321.76
  • average accounting return.
Miller Brothers is considering a project that will produce cash inflows of $61,500, $72,800, $84,600, and $68,000 a year for the next four years, respectively. What is the internal rate of return if the initial cost of the project is $225,000?
  • 10.22 percent
  • 6.32 percent
  • 16.51 percent
  • 17.82 percent
An investment has an initial cost of $420,000 and will generate the net income amounts shown below. This investment will be depreciated straight-line to zero over the four-year life of the project. Should this project be accepted based on the average accounting rate of return if the required rate is 16 percent? Why or why not?
  • Project B, because it has the higher net present value
  • Net present value
  • No, because the AAR is less than 16 percent
  • The net present value is equal to zero.
A firm is reviewing a project that has an initial cost of $71,The project will produce annual cash inflows, starting with year 1, of $8,000, $13,400, $18,600, $33,100, and finally in year 5, $37,What is the profitability index if the discount rate is 11 percent?
  • 1.07
  • 22.56
  • $8,166.19
  • 0.96
The Nifty Fifty is considering opening a new store at a start-up cost of $720,The initial investment will be depreciated straight-line to zero over the 15-year life of the project. What is the average accounting rate of return?
  • 14.35 percent
  • 6.32 percent
  • 7.56 percent
  • 11.49 percent
What is the net present value of the following cash flows if the relevant discount rate is 8 percent?
  • Payback
  • $2,500; -$8,665.07
  • $7,976.70
  • $1,587.61
What is the net present value of the following cash flows if the relevant discount rate is 9.0 percent?
  • $39.80
  • $3,374.11
  • $8,166.19
  • 15.81 percent
China Importers would like to spend $221,000 to expand its warehouse. However, the company has a loan outstanding that must be repaid in 2.5 years and thus will need the $221,000 at that time. The warehouse expansion project is expected to increase the cash inflows by $58,000 in the first year, $139,000 in the second year, and $210,000 a year for the following 2 years. Should the firm expand at this time? Why or why not?
  • Yes, because the IRR is 12.74 percent
  • Yes, because the money will be recovered in 2.11 years
  • No, because the AAR is less than 16 percent
  • Yes, because the AAR is greater than 9.5 percent
Which one of the following analytical methods is based on net income?
  • The profitability index will equal 1.0.
  • The payback method is biased toward short-term projects.
  • Average accounting return
  • average accounting return.
Textiles Unlimited has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects? Which project is better if the required return is above this interest rate?
  • 14.02 percent; A
  • 13.15 percent: B
  • 7.56 percent
  • 11.49 percent
In the late 20th century, Ghana began to follow the World Bank's recommendations for economic reform. As a result, Accra:
  • Lagos and Kinshasa.
  • An invisible city.
  • South Africa
  • All of the above.
The first European settlements along the coast of sub‑Saharan Africa included St. Louis, Luanda, and Lourenço Marques (now Maputo). From what country did the settlers come?
  • South Africa
  • Portugal
  • Zanzibar
  • Lagos
All of the following are major problems in most sub-Saharan African cities except:
  • Developing ecovillages into the countryside.
  • Only about 4 out of 10 people in SSA live in cities.
  • Maintaining subway systems and trolley lines.
  • Zimbabwe, Sofala, Dingaan's Kraal
It grew into the "island metropolis of Eastern Africa" as the center of a mercantile empire whose tentacles stretched to the Congo. It later was refashioned by the Portuguese and then became a British colonial capital. To what city-state do these facts apply?
  • Zanzibar
  • South Africa
  • China
  • Portugal
The slums of former French-colonial cities in Africa are known as:
  • Hybrid model
  • Johannesburg
  • Bidonvilles
  • South Africa
Pretoria came to be governed as part of a metropolitan municipality called Tshwane. Port Elizabeth came to be part of the Nelson Mandela municipality. What event led to this era of political reorganization and place re-naming in South Africa?
  • Zimbabwe, Sofala, Dingaan's Kraal
  • The Arabian Peninsula and the Persian Gulf.
  • How segregation by race has become segregation by class.
  • Boer wars between the Dutch and English.
Lagos in the 20th century and Accra in the 21st century began benefitting from a new source of international earnings that enriched each nation's economy. What industry was responsible for those new earnings?
  • All of the above.
  • Lagos and Kinshasa.
  • An invisible city.
  • Offshore oil and gas.
In urban Africa, all of the following forces have driven the trend toward ever more people engaging in multiple economic activities except:
  • When a city becomes a set of distinct neighborhoods cut off from each other.
  • Chinese
  • Accra, Ghana
  • Government programs that help reduce family size.
Nairobi:
  • Has never been considered by Africans to be a suitable place to live.
  • How segregation by race has become segregation by class.
  • The Arabian Peninsula and the Persian Gulf.
  • Efforts are being made to teach people how to burn their waste at home.
Beginning in the 9th century, cities on Africa's Indian Ocean coast developed economically, culturally, and politically as a result of trade with:
  • The history of the slave trade.
  • Only about 4 out of 10 people in SSA live in cities.
  • Developing ecovillages into the countryside.
  • The Arabian Peninsula and the Persian Gulf.
Which one of the following has been proposed to curb migration into Dakar?
  • Developing ecovillages into the countryside.
  • Maintaining subway systems and trolley lines.
  • Only about 4 out of 10 people in SSA live in cities.
  • Efforts are being made to teach people how to burn their waste at home.
The township of Roma is now inhabited by Lusaka's professional class. Under the British, it was inhabited exclusively by privileged whites. In both cases, Roma's maids and gardeners come from the informal settlement to the northwest. This is an example of:
  • How segregation by race has become segregation by class.
  • Efforts are being made to teach people how to burn their waste at home.
  • Boer wars between the Dutch and English.
  • The Arabian Peninsula and the Persian Gulf.
What country is among the most urbanized in Sub-Saharan Africa and has the most developed urban hierarchy?
  • Hybrid model
  • All of the above.
  • Johannesburg
  • South Africa
Kinshasa is often used as an example of relocalization. What is relocalization?
  • Accra, Ghana
  • Chinese
  • Government programs that help reduce family size.
  • When a city becomes a set of distinct neighborhoods cut off from each other.
The largest mining and industrial center in Africa, and a city built on gold, is:
  • Hybrid model
  • South Africa
  • Bidonvilles
  • Johannesburg
Elite housing estates on the outskirts of many Africa cities are often built with foreign capital. In the case of Silverest Gardens on the outskirts of Lusaka, that capital came from a company based in:
  • Zanzibar
  • Portugal
  • Lagos
  • China
Some cities such as Dakar, with nearby Gorée Island, and Elmina, with its castle, are witnessing the growth of a tourism industry built on:
  • The upper Nile and Ethiopia.
  • Zimbabwe, Sofala, Dingaan's Kraal
  • The Arabian Peninsula and the Persian Gulf.
  • The history of the slave trade.
Which one of the following is not true of the waste management problem in most large sub-Saharan African cities?
  • South Africa
  • Efforts are being made to teach people how to burn their waste at home.
  • Only about 4 out of 10 people in SSA live in cities.
  • Developing ecovillages into the countryside.
In terms of morphology, cities in sub-Saharan Africa are trending toward the:
  • Lagos and Kinshasa.
  • Bidonvilles
  • Johannesburg
  • Hybrid model
Of the following cities, which one had the smallest number of European settlers and therefore is the most deserving of being called "a bona fide African city"?
  • Lagos
  • China
  • Portugal
  • All of the above.
Much of what comprises Kinshasa in both physical and economic terms is undocumented, giving rise to discussion of it as:
  • An invisible city.
  • Lagos and Kinshasa.
  • All of the above.
  • South Africa
Only two of the largest cities in Sub-Saharan Africa are megacities. They are:
  • Lagos and Kinshasa.
  • South Africa
  • Hybrid model
  • All of the above.
Which one of the following best describes the proportion of the population in sub-Saharan Africa which lives in cities?
  • Efforts are being made to teach people how to burn their waste at home.
  • Only about 4 out of 10 people in SSA live in cities.
  • Developing ecovillages into the countryside.
  • South Africa
You have a router that is configured as a firewall. The router is a layer 3 device only. Which of the following does the router use for identifying allowed or denied packets?-Mac addy-session ID-IP addy-user and pass
  • -IP addy(a router acting as a firewall on layer 3 is capable of making forwarding decisions based on the ip address.MAC addy is layer 2, session ID is used by circuit level gateways and user/pass is used by application layer)
  • -Put the web server inside the DMZ-Put the database server on the private network(publicly accessible servers are placed inside the DMZ, protected servers should be within the protected zone of the private network)
  • -Host based firewall(a host based firewall inspects traffic recieved by a host. use a host based firewall to protect you computer from attacks when there is no network based firewall, such as when you connect to the internet in a public location)
  • -IP address(A router acting as a firewall at layer 3 is capable of making forwarding decisions based on the IP addressThe MAC addy is associated with OSI model layer 2. switches and wireless access points use MAC addy's to control access. The session ID is used by a circuit level gateway, and username and password are used by application layer firewalls)
You have been given a laptop to use for work. You connect the laptop to your company network, use it from home, and use it while traveling. You want to protect the laptop from Internet-based attacks. Which solution should you use?-Host based firewall-Proxy server-VPN concentrator-network based firewall
  • -Host based firewall(a host based firewall inspects traffic recieved by a host. use a host based firewall to protect you computer from attacks when there is no network based firewall, such as when you connect to the internet in a public location)
  • -destination address of a packet-source address of a packet-port numberfirewalls allow you to filter by IP address and port number
  • -destination address of a packet-port number-source address of packet(firewalls allow you to filter by IP address and port number)
  • -Put the web server inside the DMZ-Put the database server on the private network(publicly accessible servers are placed inside the DMZ, protected servers should be within the protected zone of the private network)
Match the firewall type on the right with the OSI layers at which it operates.Note: Each OSI Layer can be used once, more than once, or not at all.Routed firewallorvirtual firewall-operates at layer 2:-operates at layer 3:-counts as a hop in the path between hosts:-does not count as a hop on the path between hosts:-each interface connects to a different network:-each interface connects to the same network segment:
  • -Handles requests from the internet to a server in a private network.-can perform load balancing, authentication, and caching.(a reverse proxy server handles requests from the internet to a server located inside a private network. reverse proxies can perform load balancing, authentication, and caching.reverse proxies often work transparently, meaning clients don't know they are connected to a reverse proxy)
  • -operates at layer 2: virtual-operates at layer 3: routed-counts as a hop in the path between hosts: routed-does not count as a hop on the path between hosts: virtual-each interface connects to a different network: routed-each interface connects to the same network segment: virtual(in a routed firewall, the firewall is also a layer 3 router. many hardware routers include firewall functionality. transmitting data through these types of firewalls counts as a router hop. routed firewalls usually supporta transparent, or virtual firewall operates at layer 2 and is not seen as a router hop by connected devices)
  • -install a proxy server. allow internet access only through the proxy server.(use a proxy server to control internet access based on users, time os day and websites visited. You configure these rules on the proxy server and all internet requests are routed through the proxy server.Use a packet filtering firewall, such as windows firewall, to allow or deny individual packets based on characteristics such as source or destination address and port number. Configure internet zones to identify trusted or restricted websites and control the types of actions that can be performed when visiting those sites.
  • -verifies sequencing of session packets-operates at the session layer(A circuit proxy filter firewall operates at the session layer. It verifies the sequencing of session packets, breaks the connections, and acts as a proxy between the server and the client.An application layer firewall operates at the application layer, examines the entire message, and can act as a proxy to clients. A stateful inspection firewall operates at the network and transport layers. it filters on both IP addresses and port numbers. A kernel proxy firewall operates at the operating system ring 0.)
In which of the following situations would you most likey implement a DMZ?-You want to detect and respond to attacks in real time-you want to encrypt data sent between two hosts using the internet-you want internet users to see a single IP address when accessing your company network-you want to protect a public web server from attack
  • -destination address of a packet-port number-source address of packet(firewalls allow you to filter by IP address and port number)
  • -you want to protect a public web server from attack(DMZ's protect servers that are going to be accessed by outside users, such as users from the internet.)
  • -destination address of a packet-source address of a packet-port numberfirewalls allow you to filter by IP address and port number
  • -Packet filtering(firewalls often filter packets by checking each packet against a set of administrator-defined criteria. If the packet is not accepted, it is simply dropped)
When designing a firewall, what is the recommended approach for opening and closing ports?-close all ports; open 20, 21, 53, 80, and 443.-close all ports-open all ports; close ports that show improper traffic or attacks in progress.-close all ports; open only ports required by applications inside the DMZ.-Open all ports; close ports that expose common network attacks
  • -open port 25 to allow SMTP service(the simple mail transfer protocol or SMTP uses TCP port 25 and is responsible for sending, if port 25 is blocked, users will not be able to *send* mail, but they could recieve it using port 11 and the POP3 protocol)
  • -network based firewall( a DMZ is a buffer network, or subnet, that sits between the private network and an untrusted network, such as the internethost based firewall inspects traffic received by hostVPN concentrator is a device that is used to establish remote VPN connections. IDS or intrusion detection system is a special network device that can detect attacks and suspicious activity, also called IPS or intrusion prevention system)
  • -Handles requests from the internet to a server in a private network.-can perform load balancing, authentication, and caching.(a reverse proxy server handles requests from the internet to a server located inside a private network. reverse proxies can perform load balancing, authentication, and caching.reverse proxies often work transparently, meaning clients don't know they are connected to a reverse proxy)
  • -close all ports; open only ports required by applications inside the DMZ.(when designing a firewall, the recommended practice is to close all ports and the only open the ports that allow the traffic that you want inside the DMZ or the private network. Ports 20, 21, 53, 80, and 443 are common ports that are open, but the exact ports you open will depend on the services provided inside the DMZ)
Which of the following are true of a circuit proxy filter firewall? (select 2)-examines the entire message contents-operates at the network and transport layers-operates at the application layer.-verifies sequencing of session packets-operates at ring 0 of the operating system-operates at the session layer
  • -Handles requests from the internet to a server in a private network.-can perform load balancing, authentication, and caching.(a reverse proxy server handles requests from the internet to a server located inside a private network. reverse proxies can perform load balancing, authentication, and caching.reverse proxies often work transparently, meaning clients don't know they are connected to a reverse proxy)
  • -Stateful-Filters by session(a circuit level proxy or gateway makes decisions about which traffic to allow based on virtual circuits or sessions. a circuit level proxy is considered a stateful firewall because it keeps track of the state of a session.Packet filtering firewalls are stateless and filter by IP addresses and port number. Application level gateways filter by application layer data, which might include data such as URLs within an HTTP request)
  • -verifies sequencing of session packets-operates at the session layer(A circuit proxy filter firewall operates at the session layer. It verifies the sequencing of session packets, breaks the connections, and acts as a proxy between the server and the client.An application layer firewall operates at the application layer, examines the entire message, and can act as a proxy to clients. A stateful inspection firewall operates at the network and transport layers. it filters on both IP addresses and port numbers. A kernel proxy firewall operates at the operating system ring 0.)
  • -An access list filters traffic based on the IP header information such as source or destination IP address, protocol, or socket numbers(access lists filter traffic based on the IP header information such as source or destination IP address, Protocol, or socket numbers. Access lists are configured on routers and operate on layer 3 information.)
You administer a Web server on your network. The computer has multiple IP addresses. They are 192.168.23.8 to 192.168.23.The name of the computer is www.westsim.com. You configured the Web site as follows:• IP address: 192.168.23.8• HTTP Port: 1030• SSL Port: 443Users complain that they can't connect to the Web site when they type www.westsim.com. What is the most likely source of the problem?-SSL is blocking internet raffic-The HTTP port should be changed to 80-FTP is not configured on the server-Clients are configured to look for the wrong IP addresses
  • -the MGCP protocol is generating traffic, which VoIP uses to send data over a network.(the media gateway control protocol or MGCP uses port 2427)
  • -web server and email server80 is web pages, 25 is SMTP (simple mail transfer protocol), 110 is POP3 (post office protocol), and 143 is IMAP4 (internet message access protocol)
  • -Put the web server inside the DMZ-Put the database server on the private network(publicly accessible servers are placed inside the DMZ, protected servers should be within the protected zone of the private network)
  • -The HTTP port should be changed to 80(the default HTTP port for the web is 80, if you change it, users must know this and specify the correct port number)
You have used firewalls to create a demilitarized zone. You have a web server that needs to be accessible to internet users. The web server must comunicate with a database server for retrieving product, customer, and order information.How should you place devices on the network to best protect the servers? ( select 2)-Put the web server inside the DMZ-Put the web server on the private network-Put the database server on the private network-Put the database server inside the DMZ
  • -Put the web server inside the DMZ-Put the database server on the private network(publicly accessible servers are placed inside the DMZ, protected servers should be within the protected zone of the private network)
  • -Host based firewall(a host based firewall inspects traffic recieved by a host. use a host based firewall to protect you computer from attacks when there is no network based firewall, such as when you connect to the internet in a public location)
  • -web server and email server80 is web pages, 25 is SMTP (simple mail transfer protocol), 110 is POP3 (post office protocol), and 143 is IMAP4 (internet message access protocol)
  • -IP addy(a router acting as a firewall on layer 3 is capable of making forwarding decisions based on the ip address.MAC addy is layer 2, session ID is used by circuit level gateways and user/pass is used by application layer)
Which of the following describes how access lists can be used to improve network security?-An access list filters traffic based on the IP header information such as source or destination IP address, protocol, or socket numbers-an access list looks for patterns of traffic between multiple packets and takes action to stop detected attacks-an access list identifies traffic that must use authentication or encryption.-An access list filters traffic based on the frame header such as a source or destination MAC address
  • -Stateful-Filters by session(a circuit level proxy or gateway makes decisions about which traffic to allow based on virtual circuits or sessions. a circuit level proxy is considered a stateful firewall because it keeps track of the state of a session.Packet filtering firewalls are stateless and filter by IP addresses and port number. Application level gateways filter by application layer data, which might include data such as URLs within an HTTP request)
  • -verifies sequencing of session packets-operates at the session layer(A circuit proxy filter firewall operates at the session layer. It verifies the sequencing of session packets, breaks the connections, and acts as a proxy between the server and the client.An application layer firewall operates at the application layer, examines the entire message, and can act as a proxy to clients. A stateful inspection firewall operates at the network and transport layers. it filters on both IP addresses and port numbers. A kernel proxy firewall operates at the operating system ring 0.)
  • -An access list filters traffic based on the IP header information such as source or destination IP address, protocol, or socket numbers(access lists filter traffic based on the IP header information such as source or destination IP address, Protocol, or socket numbers. Access lists are configured on routers and operate on layer 3 information.)
  • -A remote office with no on-site technician.-Spam filtering(security functions in an all in one appliance include-spam filtering-url filter-web content filter-malware inspection-intrusion detection systemin addition they can include-network switch-router-firewall-TX uplink (integrated CSU/DSU)-bandwidth shaping)
You are monitoring network traffic on your network, and you see the traffic between two network hosts on portWhich kind of network traffic uses this port?-someone is remotely accessing another system using the SSH protocol.-a workstation is using the DHCP protocol to request an IP address from a DHCP server.-the MGCP protocol is generating traffic, which VoIP uses to send data over a network.-a ping of death attack on a network host is in progress
  • -the MGCP protocol is generating traffic, which VoIP uses to send data over a network.(the media gateway control protocol or MGCP uses port 2427)
  • -The HTTP port should be changed to 80(the default HTTP port for the web is 80, if you change it, users must know this and specify the correct port number)
  • -FTP(FTP enables file trasnfers and supports user authentication.the trvial file transfer protocol enables file transfer but doesnt support user authentication)
  • -web server and email server80 is web pages, 25 is SMTP (simple mail transfer protocol), 110 is POP3 (post office protocol), and 143 is IMAP4 (internet message access protocol)
You have recently installed a new windows server 2016 system. To ensure the accuracy of the system time, you have loaded an application that synchronized the hardware clock on the server with an external time source on the internet. Now, you must configure the firewall on your network to allow time synchronization traffic through.which of the following ports are you most likely to open on the firewall?-110-80-123-119
  • -123(TCP/IP port 123 is assigned to the network time protocol (NTP). NTP is used to communicate time synchronization info between systems on a networkHTTP uses 80, for requests to a web server and retrieving web pages from a web server. 119 is used by the network news transfer protocol (NTTP) which accesses and retrieves messages from newsgroups. 110 is used by the post office protocol version 3 (POP3) to download email from mail servers)
  • -Host based firewall(a host based firewall inspects traffic recieved by a host. use a host based firewall to protect you computer from attacks when there is no network based firewall, such as when you connect to the internet in a public location)
  • -network based firewall( a DMZ is a buffer network, or subnet, that sits between the private network and an untrusted network, such as the internethost based firewall inspects traffic received by hostVPN concentrator is a device that is used to establish remote VPN connections. IDS or intrusion detection system is a special network device that can detect attacks and suspicious activity, also called IPS or intrusion prevention system)
  • -IP address(A router acting as a firewall at layer 3 is capable of making forwarding decisions based on the IP addressThe MAC addy is associated with OSI model layer 2. switches and wireless access points use MAC addy's to control access. The session ID is used by a circuit level gateway, and username and password are used by application layer firewalls)
Which of the following is likely to be located in a DMZ?-backup server-domain controller-user workstations-ftp server
  • -A remote office with no on-site technician.-Spam filtering(security functions in an all in one appliance include-spam filtering-url filter-web content filter-malware inspection-intrusion detection systemin addition they can include-network switch-router-firewall-TX uplink (integrated CSU/DSU)-bandwidth shaping)
  • -Packet filtering(firewalls often filter packets by checking each packet against a set of administrator-defined criteria. If the packet is not accepted, it is simply dropped)
  • -Stateful-Filters by session(a circuit level proxy or gateway makes decisions about which traffic to allow based on virtual circuits or sessions. a circuit level proxy is considered a stateful firewall because it keeps track of the state of a session.Packet filtering firewalls are stateless and filter by IP addresses and port number. Application level gateways filter by application layer data, which might include data such as URLs within an HTTP request)
  • -ftp server(DMZ should only contain servers that need to be accessed by users outside of the private network)
Which of the following is a firewall function?-encrypting-protocol conversion-frame filtering-FTP hosting-packet filtering
  • -A remote office with no on-site technician.-Spam filtering(security functions in an all in one appliance include-spam filtering-url filter-web content filter-malware inspection-intrusion detection systemin addition they can include-network switch-router-firewall-TX uplink (integrated CSU/DSU)-bandwidth shaping)
  • -ftp server(DMZ should only contain servers that need to be accessed by users outside of the private network)
  • Packet filtering firewall: 3Circuit level proxy: 5Application level gateway: 7Routed firewall: 3Transparent firewall: 2
  • -Packet filtering(firewalls often filter packets by checking each packet against a set of administrator-defined criteria. If the packet is not accepted, it is simply dropped)
You connect your computer to a wireless network available at the local library. You find that you can access all Web sites you want on the Internet except for two. What might be causing the problem?-A proxy server is blocking access to websites-Port triggering is redirecting traffic to the wrong IP address-A firewall is blocking ports 80 and 443-The router has not been configured to perform port forwarding
  • -A proxy server is blocking access to websites(a proxy server can be configured to block internet access based on website or URL. Many schools and public networks use proxy servers to prevent access to websites with objectionable content.Ports 80 and 443 are used by HTTP to retrieve all web content. if a firewall were blocking these ports, access would be denied to all websites. Port forwarding directs incoming connections to a host on the private network. Port triggering dynamically opens firewall ports based on applications that initiate contact from the private network.)
  • -verifies sequencing of session packets-operates at the session layer(A circuit proxy filter firewall operates at the session layer. It verifies the sequencing of session packets, breaks the connections, and acts as a proxy between the server and the client.An application layer firewall operates at the application layer, examines the entire message, and can act as a proxy to clients. A stateful inspection firewall operates at the network and transport layers. it filters on both IP addresses and port numbers. A kernel proxy firewall operates at the operating system ring 0.)
  • -install a proxy server. allow internet access only through the proxy server.(use a proxy server to control internet access based on users, time os day and websites visited. You configure these rules on the proxy server and all internet requests are routed through the proxy server.Use a packet filtering firewall, such as windows firewall, to allow or deny individual packets based on characteristics such as source or destination address and port number. Configure internet zones to identify trusted or restricted websites and control the types of actions that can be performed when visiting those sites.
  • -network based firewall( a DMZ is a buffer network, or subnet, that sits between the private network and an untrusted network, such as the internethost based firewall inspects traffic received by hostVPN concentrator is a device that is used to establish remote VPN connections. IDS or intrusion detection system is a special network device that can detect attacks and suspicious activity, also called IPS or intrusion prevention system)
Match the firewall type on the right with the OSI layers at which it operates.Note: Each OSI Layer can be used once, more than once, or not at all.OSI layers 1-7Packet filtering firewall:Circuit level proxy:Application level gateway:Routed firewall:Transparent firewall:
  • -destination address of a packet-source address of a packet-port numberfirewalls allow you to filter by IP address and port number
  • -destination address of a packet-port number-source address of packet(firewalls allow you to filter by IP address and port number)
  • -operates at layer 2: virtual-operates at layer 3: routed-counts as a hop in the path between hosts: routed-does not count as a hop on the path between hosts: virtual-each interface connects to a different network: routed-each interface connects to the same network segment: virtual(in a routed firewall, the firewall is also a layer 3 router. many hardware routers include firewall functionality. transmitting data through these types of firewalls counts as a router hop. routed firewalls usually supporta transparent, or virtual firewall operates at layer 2 and is not seen as a router hop by connected devices)
  • Packet filtering firewall: 3Circuit level proxy: 5Application level gateway: 7Routed firewall: 3Transparent firewall: 2
Haley configures a Web site using Windows 2016 default values. What are the HTTP port and SSL port settings?-80 for HTTP; 443 for SSL-440 for HTTP; 160 for SSL-160 for HTTP; 440 for SSL-443 for HTTP; 80 for SSL
  • -A remote office with no on-site technician.-Spam filtering(security functions in an all in one appliance include-spam filtering-url filter-web content filter-malware inspection-intrusion detection systemin addition they can include-network switch-router-firewall-TX uplink (integrated CSU/DSU)-bandwidth shaping)
  • -80 for HTTP; 443 for SSL(The default TCP port setting for HTTP is 80. You can change that setting to another TCP setting that is not in use, but users will have to know they must request the non-default setting, or they will be unable to connect. The SSL port number is 443 and is only used with secure socket layers for encryption)
  • -IP addy(a router acting as a firewall on layer 3 is capable of making forwarding decisions based on the ip address.MAC addy is layer 2, session ID is used by circuit level gateways and user/pass is used by application layer)
  • -open port 25 to allow SMTP service(the simple mail transfer protocol or SMTP uses TCP port 25 and is responsible for sending, if port 25 is blocked, users will not be able to *send* mail, but they could recieve it using port 11 and the POP3 protocol)
in the output of the netstat command, you notice that a remote system has made a connection to your windows server 2016 system using TCP/IP port 21.Which of the following actions is the remote system most likely performing?-Performing a name resolution request-downloading a file-downloading a web page-downloading email
  • -someone is using VoIP to make a telephone call(some VoIP's use the H.323 protocol to make calls, which uses port 1720)
  • -downloading a file(port 21 is used for the file transfer protocol or FTP.)
  • -destination address of a packet-port number-source address of packet(firewalls allow you to filter by IP address and port number)
  • -destination address of a packet-source address of a packet-port numberfirewalls allow you to filter by IP address and port number
which of the following features are common functions of an all in one security appliance? (select 2)-quality of service-bandwidth shaping-content caching-password complexity-Spam filtering
  • -An access list filters traffic based on the IP header information such as source or destination IP address, protocol, or socket numbers(access lists filter traffic based on the IP header information such as source or destination IP address, Protocol, or socket numbers. Access lists are configured on routers and operate on layer 3 information.)
  • -Stateful-Filters by session(a circuit level proxy or gateway makes decisions about which traffic to allow based on virtual circuits or sessions. a circuit level proxy is considered a stateful firewall because it keeps track of the state of a session.Packet filtering firewalls are stateless and filter by IP addresses and port number. Application level gateways filter by application layer data, which might include data such as URLs within an HTTP request)
  • -A remote office with no on-site technician.-Spam filtering(security functions in an all in one appliance include-spam filtering-url filter-web content filter-malware inspection-intrusion detection systemin addition they can include-network switch-router-firewall-TX uplink (integrated CSU/DSU)-bandwidth shaping)
  • -A remote office with no on-site technician.(all in one security appliances are best suited for small offices with limited space or remote offices without a technician to manage the individual security components.a company with a dedicated network closet would have the space necessary for multiple network devices. and a company that handles large amounts of data should use dedicated devices to maintain optimal performance.)
You would like to control internet access based on users, time of day, and websites visited. how can you do this?-configure a packet filtering firewall. Add rules to allow or deny internet access-Configure the local security policy of each system to add internet restrictions.-enable windows firewall on each system. add or remove exceptions to control access.-install a proxy server. allow internet access only through the proxy server.-configure internet zones using internet options
  • -install a proxy server. allow internet access only through the proxy server.(use a proxy server to control internet access based on users, time os day and websites visited. You configure these rules on the proxy server and all internet requests are routed through the proxy server.Use a packet filtering firewall, such as windows firewall, to allow or deny individual packets based on characteristics such as source or destination address and port number. Configure internet zones to identify trusted or restricted websites and control the types of actions that can be performed when visiting those sites.
  • -A proxy server is blocking access to websites(a proxy server can be configured to block internet access based on website or URL. Many schools and public networks use proxy servers to prevent access to websites with objectionable content.Ports 80 and 443 are used by HTTP to retrieve all web content. if a firewall were blocking these ports, access would be denied to all websites. Port forwarding directs incoming connections to a host on the private network. Port triggering dynamically opens firewall ports based on applications that initiate contact from the private network.)
  • -network based firewall( a DMZ is a buffer network, or subnet, that sits between the private network and an untrusted network, such as the internethost based firewall inspects traffic received by hostVPN concentrator is a device that is used to establish remote VPN connections. IDS or intrusion detection system is a special network device that can detect attacks and suspicious activity, also called IPS or intrusion prevention system)
  • -operates at layer 2: virtual-operates at layer 3: routed-counts as a hop in the path between hosts: routed-does not count as a hop on the path between hosts: virtual-each interface connects to a different network: routed-each interface connects to the same network segment: virtual(in a routed firewall, the firewall is also a layer 3 router. many hardware routers include firewall functionality. transmitting data through these types of firewalls counts as a router hop. routed firewalls usually supporta transparent, or virtual firewall operates at layer 2 and is not seen as a router hop by connected devices)
You have just installed a packet filtering firewall on your network. Which options will you be able to set on your firewall? (select all that apply)-checksum-digital signature-Ackknowledgement numnber-destination address of a packet-source address of a packet-sequence number-port number
  • -destination address of a packet-source address of a packet-port numberfirewalls allow you to filter by IP address and port number
  • -FTP(FTP enables file trasnfers and supports user authentication.the trvial file transfer protocol enables file transfer but doesnt support user authentication)
  • -destination address of a packet-port number-source address of packet(firewalls allow you to filter by IP address and port number)
  • -Host based firewall(a host based firewall inspects traffic recieved by a host. use a host based firewall to protect you computer from attacks when there is no network based firewall, such as when you connect to the internet in a public location)
Your company has a connection to the Internet that allows users to access the Internet. You also have a Web server and an e-mail server that you want to make available to Internet users. You want to create a DMZ for these two servers. Which type of device should you use to create the DMZ?-VPN concentrator-IDS- Host based firewall-network based firewall-IPS
  • -A proxy server is blocking access to websites(a proxy server can be configured to block internet access based on website or URL. Many schools and public networks use proxy servers to prevent access to websites with objectionable content.Ports 80 and 443 are used by HTTP to retrieve all web content. if a firewall were blocking these ports, access would be denied to all websites. Port forwarding directs incoming connections to a host on the private network. Port triggering dynamically opens firewall ports based on applications that initiate contact from the private network.)
  • -Host based firewall(a host based firewall inspects traffic recieved by a host. use a host based firewall to protect you computer from attacks when there is no network based firewall, such as when you connect to the internet in a public location)
  • -network based firewall( a DMZ is a buffer network, or subnet, that sits between the private network and an untrusted network, such as the internethost based firewall inspects traffic received by hostVPN concentrator is a device that is used to establish remote VPN connections. IDS or intrusion detection system is a special network device that can detect attacks and suspicious activity, also called IPS or intrusion prevention system)
  • -Handles requests from the internet to a server in a private network.-can perform load balancing, authentication, and caching.(a reverse proxy server handles requests from the internet to a server located inside a private network. reverse proxies can perform load balancing, authentication, and caching.reverse proxies often work transparently, meaning clients don't know they are connected to a reverse proxy)
You are monitoring network traffic on your network, and you see the traffic between two network hosts on portWhat is the source of this network traffic?- a man in the middle attack is in progress-someone is downloading files from a server using the FTP protocol-someone is using VoIP to make a telephone call-a workstation is using the DNS protocol to send a name resolution request to a DNS server.
  • -someone is using VoIP to make a telephone call(some VoIP's use the H.323 protocol to make calls, which uses port 1720)
  • -the MGCP protocol is generating traffic, which VoIP uses to send data over a network.(the media gateway control protocol or MGCP uses port 2427)
  • -web server and email server80 is web pages, 25 is SMTP (simple mail transfer protocol), 110 is POP3 (post office protocol), and 143 is IMAP4 (internet message access protocol)
  • -destination address of a packet-source address of a packet-port numberfirewalls allow you to filter by IP address and port number
You want to allow your users to download files from a server running the TCP/IP protocol. You want to require user authentication to gain access to specific directories on the server.What TCP/IP protocol should you implement to provide this capability?-FTP-IP-TFTP-TCP-HTTP-HTML
  • -the MGCP protocol is generating traffic, which VoIP uses to send data over a network.(the media gateway control protocol or MGCP uses port 2427)
  • -destination address of a packet-port number-source address of packet(firewalls allow you to filter by IP address and port number)
  • -destination address of a packet-source address of a packet-port numberfirewalls allow you to filter by IP address and port number
  • -FTP(FTP enables file trasnfers and supports user authentication.the trvial file transfer protocol enables file transfer but doesnt support user authentication)
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