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marta [7]
3 years ago
13

After earning a graduate degree in Engineering Management, Mazin began working for PDO International. This is a company based in

the Oman, which offers engineering, design, and construction services to countries all over the world.Mazin’s work is focused on international development; his first assignment is to lead a team to develop a bid for a highway construction project in East Africa. After the engineering proposal is submitted, Mazin is proud of the work his team has accomplished and promises his manager he will do everything possible to make sure that PDO receives the contract.PDO’s bid is well-received, and Mazin and his team are flown to East Africa to finish negotiations. Mazin is thrilled when his company receives the bid; the only stipulation is that they build their construction headquarters in a specific region in the country. Mazin then begins scouting the region for a location to build their headquarters.In order to obtain building permits in the region, Mazin has to negotiate with the local government. As he begins negotiations, he realizes that bribery is both a common and expected practice. If he does not bribe the local officials, he will not be able to build PDO’s headquarters in that region and consequently will lose the contract; his first managerial project will be a failure. However, it is illegal for an Omani citizen to bribe a foreign official in order to obtain business; if he is caught for bribery, he could face jail time and his company could be fined millions of dollars.1. What should he do?
Business
1 answer:
Vitek1552 [10]3 years ago
3 0

Answer:

A case of ethical conduct

Explanation:

Mazin is caught in an ethical dilemma here, however compromising and yielding to offer bribes to local officials could put him in jail and soil his reputation and that of his organization forever. Therefore bribing is not an option here. A first option could be to check or negotiate with a higher authority such as the state government or the federal government that awarded the contract. Mazin could apply his skills to get a higher government authority to act in the favor of the company and supersede all resistance in the local authority. He could also seek the help of his manager in this instance as this would be profound feedback on what could be delaying the final contract agreement.

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Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $28,0
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The ending cash balance will be $11,000.

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$16,000
$16,000-$10,000
$6,000
$6,000+$5,000
$11,000
6 0
3 years ago
On December 31, 2020, Wayne, Inc. sold $4,000,000 (face value) of bonds. The bonds are dated December 30, 2020, pay interest ann
Andreas93 [3]

Answer:

Wayne, Inc.

1. The stated interest rate for this bond issue is:

= 8%.

2. The market interest rate for this bond issue is:

= 9%.

3. The selling price of the bonds as a percentage of the face value is 97.5% ($3,900,000/$4,000,000 * 100)

4. Journal Entry to record the sale of the bond issue on December 31, 2020:

December 31, 2020:

Debit Cash $3,900,000

Debit Bonds Discounts $100,000

Credit Bonds Payable $4,000,000

To record the bonds proceeds, discounts, and liability.

5. December 31, 2021:

Debit Bonds Interest Expense $351,000

Credit Bonds Amortization $31,000

Credit Cash $320,000

To record the first payment of interest and amortization.

Explanation:

a) Data and Calculations:

Face value of bonds = $4,000,000

Bonds price = $3,900,000

Discount =   $100,000

December 31, 2021:

Interest expense = $351,000

Market interest rate = $351,000/$3,900,000 * 100 = 9%

Cash payment =     $320,000

Coupon interest rate = $320,000/$4,000,000 * 100 = 8%

7 0
3 years ago
ABC Company sold the rights to use one of their patented processes that will result in them receiving cash payments of $10,000 a
BigorU [14]

Answer:

$77,217

$11,289

Explanation:

Fist we will calculate the present value of $10,000 payment

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $10,000

r = rate of return = 10% / 2  = 5%

n = number of period = 5 years x 2 semiannual payments per year = 10 payments

PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]

PV of Annuity = $77,217

Now we will use the discounting method to calculate the present value of lump sum payment of $20,000

Present value = Future value x Present value factor

PV = FV x ( 1 + r )^-n

PV = $20,000 x ( 1 + 0.1 )^-6

PV = $11,289

6 0
3 years ago
If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for co
aivan3 [116]
If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for concern about <span>the extent of competition. In a monopolistically </span>competitive market, products are differentiated by brand and quality but are not perfect substitutes due to this. Perfect competition is basically a theoretical market because the criteria to qualify has a perfect competitive market is hard to meet. The firms all set the price of their product and the market does not have any influence over it. 
8 0
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Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor, Almos Garment Corp. If Almo
Novay_Z [31]

Answer:

The present of worth of machine operating cost is $ 228,061.55  

 

Explanation:

In calculating the present worth of the machine operating cost,I grew the cost of $34000 per year from year 3 onwards by 6% , thereafter I discounted the increased machine operating cost with the applicable discount factor in each year as shown in the attached spreadsheet.

Download xlsx
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