Answer:
The boss is correct.
Explanation:
Under Sarbanes-Oxley Act, a rules-based approach to corporate governance and reporting is used. It is based on the view that companies must be
required by law (or by some other form of compulsory regulation) to comply with established principles of good corporate governance.
Except in the instances of exceptions provided in the act, company has no choice than to comply regardless of the cost implication because non-compliance is punishable under the act. Sometimes, it is called tick box approach
This is contrary to what is obtainable in a principled-based approach where allowance is given for explanation in the event of possible con-compliance.
Answer:
Accept Project A and reject Project B
Explanation:
See the images to get the answer.
Decision: Required rate of return = 16% = Cost of capital.
If Internal rate of return (IRR) > the cost of capital = Accept the project.
If Internal rate of return (IRR) < the cost of capital = Reject the project.
From the basis of the formula, we can accept the project A because the IRR of Project A (19%) is higher than the cost of capital (16%). On the other hand, we can reject the project B because the IRR of Project B (14%) is smaller than the cost of capital (14%).
Answer: B.) Contacting people who have opted out of receiving sales messages
Explanation:
A p E x
Answer:
<u>Since expected payoff for large job shop option is highest, firm should make large job shop option as capacity choice</u>
Explanation:
Expected payoff of any capacity alternative
= Probability of moderate acceptance x Payoff of moderate acceptance + Probability of strong acceptance x Payoff of strong acceptance
= 0.40 x Payoff of moderate acceptance + 0.60 x Pay off of strong acceptance
Thus Pay off for small job shop option
= 0.40 x 24000 + 0.6 x 54000
= 9600 + 32400
= $42,000
Pay off for medium job shop option
= 0.40 x 20000 + 0.60 x 64000
= 8000 + 38400
= $ 46,400
Pay off for large job shop option
= - 0.40 x 2000 + 0.60 x 96000
= - 800 + 57600
= $56,800
