Yancy Is Considering a Project Which Will Produce Cash Inflows

question 368

Multiple Choice

Yancy is considering a project which will produce cash inflows of $900 a year for 4 years. The project has a 9 % required rate of return and an initial cost of $2,800. What is the discounted payback period?

• A) 3.11 years
• B) 3.18 years
• C) 3.82 years
• D) 4.18 years
• E) never

Grasp the continuous disclosure requirements under the Securities Exchange Act of 1934.

Understand the liability for misrepresentation and fraud in securities offerings and trading.

Recognize the role and impact of state securities laws in conjunction with federal laws.

Understand the purpose and scope of the Sarbanes-Oxley Act in promoting corporate accountability.

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Definitions:

Legal Issues

Specific disputes or matters that arise under the law and require legal interpretation or intervention.

Mutual Mistake

A mistake where both parties have made mistaken assumptions as to the subject matter of the agreement.

Defendants Than Plaintiffs

A comparative statement indicating a situation where there are more individuals or entities accused in a case than those bringing the case forward.

Rescission

The legal act of cancelling or terminating a contract, returning all involved parties to their original positions.