Option C wearing straw hats become popular
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Answer: D. Green
Explanation: Because compound is the biggest interest rate
<span>If you take the question very literally, you have just joined the organisation and been offered two options. The present value of each is still $0 as you have not yet selected either or received any payment. However, assuming the question is aimed at establishing which option is better over the two year period, the following explanation applies.
Salary arrangement 1 is 7,400 monthly for 24 months
Assuming the whole salary is invested each month, and the annual interest rate is 6%, and that it is paid at the start of each month then the following formula will apply:
Present value = previous value + (previous value * interest rate) + monthly payment
Using this formula for a 24 month period results in present value of $188,196.47
Salary arrangement 2 is 33,000 initially and 6,100 monthly for 24 months
Using the same assumptions as above, and the same formula for 24 month period results in present value of $191,692.01
The main difference is the initial payment which is accruing interest throughout the period and therefore salary arrangement 2 results in a higher present value.</span>
Some of the challenges of this company include lack of control over financial reporting in all branches, and inaccurate data to make decisions for next years.
DEF Ltd's main problem is the inaccuracy regarding the recognition of revenue and other inconsistencies in financial reporting. This problem includes:
- Inaccuracies related to revenue and deferred revenue.
- Lack of documentation of some transactions.
Moreover, these problems are intended to be solved through a review process and training seminars. These two ideas are useful for the problem; however, the company might face some challenges and problems such as:
- Lack of control in all branches: DEF Ltd seems to be a big company with multiple branches around the world. This makes it difficult for the company to control all financial records even if employees are educated about the process through seminars.
- Inaccurate data for next periods: Considering there are lots of inconsistencies and some of the reports are incomplete, it is likely even after the review process the company does not have complete information about the previous transactions or revenues. This can affect future projections and decisions.
Note: This question is incomplete; here is the missing part:
Using the disclosures above as a starting point, brainstorm about the challenges regarding internal controls and that a company may face in doing business internationally?
Learn more in: brainly.com/question/10916805
