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NEW QUESTION: 1
A project has the following cash flows over the next 5 years: $800, $300, $400, $900 and $1,200. Assume all cash flows occur at the end of a year. The project requires an initial cash outlay of $1,750. The firm faces a marginal borrowing rate of 8%. The payback period for the project equals ________.
A. 4 years
B. 4.19 years
C. 3.86 year
D. 3.28 years
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The payback period is defined as the expected number of years that would be required to recover the original investment. In particular, Payback period = Years before full recovery +
(unrecovered cost at the start of payback year)/(net cash flow in the payback year) In this case, the recovery occurs in the 4th year. At the beginning of the 4th year, the unrecovered cost equals 1,750 - 800 -
300 - 400 = 250. Total cash flow in the 4th year equals 900. Therefore, payback period = 3 + 250/900
3.28 years. Note that the discount rate does not figure in the calculation of payback period.

NEW QUESTION: 2

A. Option C
B. Option D
C. Option A
D. Option B
Answer: C

NEW QUESTION: 3
An internal audit activity encounters a scope limitation from senior management that will
affect its ability to meet its goals and objectives for a potential engagement client. The nature of the scope limitation shouldbe.
A. Communicated,preferably in writing,to the board.
B. Communicated to management,stating that the limitation will not be accepted because it would impair the audit activity's independence.
C. Communicated to the external auditors so that they can investigate the area in more detail.
D. Noted in the audit workpapers,but the engagement should be carried out as scheduled,with any necessary adjustments made based on the scope limitation.
Answer: A

NEW QUESTION: 4
다음 중 마이그레이션 감사의 주요 목표는 무엇입니까?
A. 비즈니스 연속성
B. 시스템 성능
C. 데이터 무결성
D. 제어 적절성
Answer: C