Answer:
The Sarbanes-Oxley Act
Explanation:
The name of the act was given because of the two leaders who jointly worked together to regain the trust of potential investors in the financial system. The act discussed the auditing requirements, directors roles and responsibilities and the signing of the annual report by the directors as well and also that the CFO and CEO will form an opinion about the firms future, goals and giving the undertaking that the financial statement are accurate according to their knwoledge.
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Answer:
Total PV= $2,736.39
Explanation:
Giving the following information:
Year Cash Flow
1 $ 870
2 950
3 0
4 1,540
<u>First, we need to calculate the real annual discount rate:</u>
Quarterly Discount rate= 0.08/4= 0.02
Real annual interest rate= [(1+i)^n] - 1
Real annual interest rate= [(1.02^4) - 1]
Real annual interest rate= 0.08243
<em><u>Now, we can calculate the present value of the cash flows:</u></em>
PV= Cf/(1+i)^n
Year 1= 870/1.08243= 803.75
Year 2= 950/1.08243^2= 810.82
Year 4= 1,540/1.08243^4= 1,121.82
Total PV= $2,736.39
Answer:
C. To earn a satisfactory return on investment.
Explanation:
The objective of the capital budgeting is that the company should have to do the investment in that thing which should be profitiable. In this, the company have the options i.e. either it selects the better investment or proposal for the enterprise
So as per the given situation, when the return on the investment is earn and it becames satisfactory so this represent the capital budgeting objective
Hence, the option c is correct