DISCUSSION: PROFESSIONAL ROLES AND INTERNATIONAL ANALYSIS ASSIGNMENT

January 4, 2023/in Uncategorized /by

DISCUSSION: PROFESSIONAL ROLES AND INTERNATIONAL ANALYSIS ASSIGNMENT INSTRUCTIONS OVERVIEW The student will complete one Discussion: Professional Roles and International Analysis in this course. IN

DISCUSSION: PROFESSIONAL ROLES AND INTERNATIONAL ANALYSIS ASSIGNMENT INSTRUCTIONSOVERVIEWThe student will complete one Discussion: Professional Roles and International Analysis in this course. INSTRUCTIONSThe case must be selected from Sections Six through Eight of the Knapp casebook (Contemporary Auditing: Real Issues & Cases). The student will post one thread of between 1000 and 2500 words, twelve-point font. For this thread, the student must support their assertions with at least five scholarly or practitioner sources which must be listed and cited using the current APA standards for graduate classes. Acceptable sources include both refereed scholarly journals, practitioner journals and textbooks. A Statement of Christian World View must be included in which the student will express an opinion on whether the auditor or client appeared to act in accordance with a Christian World View. At least one Bible verse must be cited to support this opinion.The Case Analysis must start with a summary of the case, giving the reader a background of the case that is sufficient for the reader to understand the audit issues involved. Then, each question must be written, in order, and answered. The answers must be supported by citations to references. The Statement of Christian World View may be in a separate location or may be incorporated throughout the case analysis.

DISCUSSION: PROFESSIONAL ROLES AND INTERNATIONAL ANALYSIS ASSIGNMENT INSTRUCTIONS OVERVIEW The student will complete one Discussion: Professional Roles and International Analysis in this course. IN

This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00https://www.coursehero.com/file/16330178/DB-Forum-3-Case-Study/ Running head: SARAH RUSSELL

Case 7.2 – Sarah Russell, Staff Accountant

Morgan D. York

Liberty University This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

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Summary

Sarah Russell, a small town native of western Kansas, settled on accounting as her major

after a successful freshman year at the University of Kansas. After completing some tough

accounting courses, she managed to finish her career with two minor flaws on her transcript.

Because of her outstanding academic performance Sarah was able to accept a position with a Big

Eight accounting firm as a staff accountant in Chicago. Sarah’s first year in public accounting

was very productive, she was assigned to six audit engagements and passed all four sections of

the CPA exam on her first attempt. It helped that Sarah had the moral support of several

individuals during her first year of work. One individual, in particular, was audit partner, R.J.

Bell. During Sarah’s second year in public accounting, Bell began attempting to establish a

personal relationship with her, making her rather uncomfortable. Although she discouraged his

advances, Bell was persistent. He went out of his way to make her feel included by giving her

complimentary tickets to cultural and sporting events, called her when he was working late just

“to chat”, and even arranged for her to obtain a loan from a local bank when her car died.

Eventually, Sarah confronted Bell about his actions and informed him that she wanted to keep

their relationship strictly on a professional level. This upset Bell because he felt Sarah had

misinterpreted his actions. Because of the confrontation and confusion between the two, Bell

told Sarah she would not be assigned to any audit engagements under his supervision in the

upcoming year. While Bell did not make any more advances at Sarah, a few months later Sara

decided to return to her home state where she became a chief financial officer (CFO) for a

charitable organization.

Questions This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

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1. In your opinion, how should Sarah have handled this matter? Identify the factors

that Sarah should have considered in dealing with the situation. Also, identify the

professional and personal responsibilities of Sarah, R.J. Bell, and other relevant

individuals in this matter.

In my opinion, Sarah handled this situation very well given the circumstances. However,

she would have benefited if she were to have discussed her problem with her family or some of

her close friends. When it comes to situations such as the one Sarah was put into, it is crucial to

seek out someone whose judgment you trust and who you can rely on in regards to keeping the

information you shared confidential. Because Sarah did not feel comfortable approaching her

friends nor her family she could have reached out to an objective third party. By seeking out

individuals unaware of the situation not only are they capable of providing an objective

assessment to the situation but they are also capable of providing much needed advice and

emotional support. Overall, Sarah did a good job dealing with R.J. Bell and all the passes he

made towards her.

When it comes to harassment in the workplace, there are numerous ways to go about

responding to it. One of the first things Sarah should have done in dealing with this situation

was understand her options. Sarah must understand what she is going through whether that

means collecting information about the possible actions she can take or keep detailed notes on

the harassment incidents she is involved in. After Sarah understands her options, the next step

she needs to take is to choose the best way to approach the situation at hand. There are two kinds

of approaches Sarah can take, these include an informal approach and a formal approach. By

taking an informal approach, Sarah would have taken a personal action by being clear and

straightforward with the alleged harasser (R.J. Bell) stating their behavior is unacceptable. By This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

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taking a formal approach, Sarah would have used the mechanism of investigation which could

lead to disciplinary measures if misconduct is established. The last and final stage when it comes

to responding to harassment involves a follow-up by ensuring that all inappropriate behavior

stops and does not happen again which is crucial. If harassment is not resolved it can often time

create tension within an office or a team, depending on who all is involved.

When it comes to the personal and professional responsibilities of Sarah, R.J. Bell and

other relevant individuals involved in this matter, it is easier to identify the responsibilities of

R.J. Bell than of any other involved party. As a member of the company for eight years, Bell had

an obligation to treat Sarah with due dignity, respect, and courtesy. As a professional, Bell

should have recognized that his infatuation with Sarah was not only inappropriate but his efforts

to establish a personal relationship with her to a certain extent was completely out of line. After

Sarah discussed the matter with Bell he had a responsibility to make amends by taking all the

appropriate measures to ensure that Sarah’s personal and professional life went back to being

normal. While this case does not indicate that there were other individuals involved in this case,

it is safe to assume that specific members of the accounting firm were aware of the efforts of R.J.

Bell to establish a personal relationship with Sarah. If that was, in fact, true, those who knew

about the relationship between R.J and Sarah should have stepped in and stopped things before

they got too far off the beaten path.

2. What were the costs and potential costs to Sarah’s employer in this case? How

should accounting firms attempt to prevent these types of situations from

occurring? Assume that rather than speaking to Bell, Sarah had told the office

managing partner about the problem she faced. How should the office managing

partner have dealt with the matter? This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

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The costs and potential costs to Sarah’s employer, in this case, include the loss of

professional services provided by Sarah, litigation losses as a result of the given situation, and a

loss of prestige and credibility if the matter is publicly disclosed. When it comes to harassment

in the workplace, one thing to remember is that it does not only affect the parties involved in the

harassment claim, the company as a whole can also be affected by the situation. With that being

said harassment claims can be handled numerous ways. Companies who handle claims via

internal investigation are able to contain the costs, but once a lawsuit is brought forward things

can get expensive rather quickly. For example, the costs of an organization are high when there

is a loss in productivity, turnover, distraction of witnesses and emotional and physical health

costs when targets are measured. These costs increase exponentially when a lawsuit is added, as

mentioned before. Unfortunately, harassment is going to continue to be an issue in the

workplace. The best thing companies can do is to address the issue as soon as it happens in order

to try and eliminate the issue to avoid any kind of liability.

Accounting firms must come up with ways to try to prevent these types of situations from

occurring in their workplace. One way firms can prevent harassment is via training. Training

has become a common element of prevention programs, especially when it comes to employees

in positions of authority. So much so that several states have mandated their employees to

undergo harassment training at least once every two years. While trainings, whether online or in-

person cost money, they are still a bargain compared to legal fees and settlements in the case of a

harassment claim. Other ways companies can try and prevent harassment from occurring is by

enforcing a strict and rigorous policy stating the behavior discussed in this case is not tolerated in

this company or companies can ensure their employees fully understand their rights when it

comes to situations similar to the one Sarah was put in and encourage them to exercise their This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

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rights. One way of doing this is by establishing and providing an anonymous hotline for

employees who are facing similar situations within their workplace.

The office manager when it comes to dealing with this situation had a responsibility of

due professional care, meaning he/she should have done everything in their power to help protect

the rights of both R.J. and Sarah. One thing you must remember in situations similar to this one

is that individuals being charged with illicit behavior similar to R.J. Bell are innocent until

proven guilty. With that being said, office managers who lack personal objectivity and or

expertise with these types of situations can end up dealing with the problem in a non-effective

manner. As a result, office managers who lack personal objectivity and expertise should refer the

matter to the appropriate individual within their firm. An example of this would be referring the

matter to the firm’s director of human resources.

3. This case took place several years ago. Do you believe that events similar to those

that took place in this case could occur now? Explain.

Although this case took place several years ago, that does not mean events similar to

these cannot take place today. As mentioned before, harassment in the workplace continues to be

a pervasive and costly problem. With today’s use of technology such as text messages and

emails, it is easier for employees to commit said crime without even realizing they are doing it in

the first place. Another reason harassment is still an issue today is because individuals spend

more time in the workplace than they did in the old days. Longer work days lead to more casual

dress codes which can lead to a blurring of lines between what happens at work and what

happens in your social life. Most importantly many individuals in the workplace do not intend

for the things that they do or say to be considered harassment but to some it can be perceived that

way. Many people don’t get it, they don’t think harassment applies to them, they think what they This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

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are doing is friendly and consensual such as R.J. Bell. This is why harassment is still and

occurring issue in the workplace and this is also why is will continue to be an issue in the

workplace are years go on. This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

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References

Braverman, B. (2013, August 22). The High Cost of Sexual Harassment. The Fiscal Times .

Retrieved from http://www.thefiscaltimes.com/Articles/2013/08/22/The-High-Cost-of-

Sexual-Harassment

Buckner, G. E., Hindman, H. D., Huelsman, T. J., & Bergman, J. Z. (2014). Managing

Workplace Sexual Harassment: The Role of Manager Training. Employee

Responsibilities and Rights Journal , 26 (4), 257-278. Retrieved from

http://link.springer.com.ezproxy.liberty.edu:2048/article/10.1007%2Fs10672-014-9248-z

CERN Ombuds. (2011, July). Dealing with harassment: The complaint’s guide. Retrieved from

http://ombuds.web.cern.ch/sites/ombuds.web.cern.ch/files/Dealing%20with

%20harassment%20-%20The%20complainant’s%20guide.pdf

Greenwald, J. (2011, December 11). Sexual harassment remains major workplace

problem. Business Insurance . Retrieved from

http://www.businessinsurance.com/article/20111211/NEWS07/312119984

Gumbus, A., & Lyons, B. (2011). Workplace Harassment: The Social Costs of

Bullying. Journal of Leadership, Accountability and Ethics , 8 (5), 72-90. Retrieved from

http://search.proquest.com.ezproxy.liberty.edu:2048/docview/909486617?pq-

origsite=summon

Knapp, M. C. (2015). Contemporary auditing: Real issues and cases (10th ed.). Cengage

Learning.

Salin, D. (2008). Organisational responses to workplace harassment. Personnel Review , 38 (1),

26-44. Retrieved from This study source was downloaded by 100000793288509 from CourseHero.com on 02-09-2022 00:53:58 GMT -06:00

https://www.coursehero.com/file/16330178/DB-Forum-3-Case-Study/

http://search.proquest.com.ezproxy.liberty.edu:2048/docview/214806422?pq-

origsite=summon

Sharp, G., & Kremer, E. (2006). THE SAFETY DANCE: CONFRONTING HARASSMENT,

INTIMIDATION, AND VIOLENCE IN THE FIELD. Sociological Methodology , 36 (1),

317-327. Retrieved from

http://search.proquest.com.ezproxy.liberty.edu:2048/docview/216129752?pq-

origsite=summon

Sharp, G., & Kremer, E. (2006). THE SAFETY DANCE: CONFRONTING HARASSMENT,

INTIMIDATION, AND VIOLENCE IN THE FIELD. Sociological Methodology , 36 (1),

317-327. Retrieved from

http://search.proquest.com.ezproxy.liberty.edu:2048/docview/216129752?pq-

origsite=summon

Managing & Using Information Systems

January 4, 2023/in Uncategorized /by

Managing & Using Information Systems: A Strategic Approach, we discuss the sourcing of IT in business.Using the lessons learned in Chapter 10 of the text about the way Information Technology should

Managing & Using Information Systems: A Strategic Approach, we discuss the sourcing of IT in business.

Using the lessons learned in Chapter 10 of the text about the way Information Technology should sourced, evaluate the organization you work for or an organization you are familiar with. How is your IS/IT sourced? Does the organization use outsourcing? If so, what kind? Does this sourcing work?

You must have 1 scholarly journal articles along with your text to support your analysis. Try to find articles that are less than 5 years old.

Case 8.1 – Longtop Financial Technologies Limited

January 4, 2023/in Uncategorized /by

REPLY OVERVIEW The student will post one reply for this discussion. Your one reply must be a critique of the other student’s Discussion: Professional Roles and International Analysis in this course.

REPLYOVERVIEWThe student will post one reply for this discussion. Your one reply must be a critique of the other student’s Discussion: Professional Roles and International Analysis in this course. INSTRUCTIONSThe critique should be between 1000 and 2500 words, twelve-point type. The student will claim the work to be critiqued by a posting in reply to the selected student’s work. The critique will consist of a thread in reply to the selected student’s work. A proper critique will address each item in the Case Analysis in order, starting with the Case Summary, stating whether you agree with the posted work and adding such comments as you think will add to the Case Analysis. Each question must be written and addressed separately. The Statement of

Case 8.1 – Longtop Financial Technologies Limited

Summary

In the 1990’s Longtop Financial Technologies Limited was founded and quickly became a leading provider of technology for banks. An article talking about banking technology stated, “The development of information technology not only enabled the emergence of new industries but also changed the business model in many traditional sectors, such as banking” (He et al., 2021). Longtop was based in China but in 2007 they went public on the New York Stock Exchange.

The company continued to grow year after year. According to the textbook, in 2010 the company reported “$59 million in profit, total revenues of $169 million and net assets of $600 million” (Knapp, 2001). In addition to doing well, the company also got an unqualified opinion from Deloitte Touche Tohmatsu CPA Ltd. (D & T Shanghai). Because Longtop went public on the NYSE in 2007 they were under the regulation of the Securities and Exchange Commission (SEC).

In 2011, there were allegations made that Longtop was “cooking their books” by $400 million in cash that did not actually exist. The audit firm of D & T Shanghai decided to look into the allegations and found many issues. In order to prove the cash balances the audit firm would ask the local banks, the firm decided to go a step further and ask the headquarters, but Longtop’s officials quickly stopped the inquiries. D & T Shanghai learned that the company didn’t have the cash that they reported.

After learning about the fraud that was occurring in Longtop, D & T Shanghai decided to resign as Longtop’s audit firm. The SEC after learning what was happening at Longtop also found two other companies committing the same type of fraud. They would use local banks and the local banks would lie on behalf of the company. Because three companies were found to be committing fraud in the same way, the SEC asked D & T Shanghai to provide the workpapers that they used in the audit of Longtop. D & T Shanghai told them that they would not give them because it would be violating a Chinese law.

What are the key conditions or circumstances that must be present for a company to be “auditable”? What uncommon challenges to “auditability” are posed by Chinese companies?

According to an article from the Journal of Business Ethics, “auditability refers to the degree of clarity a qualitative study offers so that it can be audited” (Nair, 2021). There are many key conditions or circumstances that must be present for a company to be auditable. The PCAOB gives a list of items that an audit firm looks at in order to assess a company. The main items include control environment, risk management initiatives, internal controls, and other controls of the company. In order for a firm to accurately present their opinion on whether or not a company is accurately representing their financials.

There are a few uncommon challenges to “auditability” that are posed by the Chinese companies. In the case it mentions that there is a law restricting the Chinese companies from providing documents that relate to the national economy. The main issue is with the government of China. According to an article about China’s policy making about transparency versus the United states, it clearly pointed out that China is a lot stricter (Balla & Xie, 2020).

As Christians we are told we are not to lie to anyone. In this case, we see that the local banks are lying to the auditors. Proverbs 12:22 states, “The LORD detests lying lips, but he delights in people who are trustworthy” (Crossway, 2011). Overall there are many ways that a company should act and Longtop was not acting in accordance with the standards they should’ve been.

Do the major international accounting firms have a responsibility to ensure that their individual national practice units provide independent audit services that are uniform worldwide? Defend your answer.

Major international accounting firms do have the responsibility to ensure that their audit services are uniform in nature. When firms have the same audit services across the board it helps to ensure they are accurately getting information. The main issue that it causes is confusion for many people. In an article about international auditing standards it stated, “poor national auditing standards have partially contributed to the recent financial scandals in many countries worldwide” (Elmghaamez & Elmagrhi, 2022). In order to have a clear understanding of companies there should be some uniformness even if that is just within each firm.

Acme, Inc., a multinational company based in the United States, has a large subsidiary located in Beijing, China. Acme is audited by an international accounting firm headquartered in the United States; its subsidiary is audited by the Chinese affiliate of that firm. Under U.S. auditing standards, what responsibilities, if any, does Acme’s U.S. audit firm have to supervise or oversee the audit of the Chinese subsidiary?

According to the International Auditing and Assurance Standards Board, Acme’s U.S. audit firm would act like a supervisor for the audit of the Chinese subsidiary (IAASB, 2015). Because the company is headquartered in the United States the company’s auditor has a responsibility for the company as a whole which includes the Chinese affiliate. Examples of what the U.S. audit firm needs to oversee would be making sure the Chinese audit team knows the responsibilities they have as well as making sure they are sticking with all the audit objectives. The U.S. auditing firm should also make sure that the company is following AICPA guidelines. Overall the U.S. audit firm should make sure that the Chinese subsidiary is conducting the audit the way they should.

What alternative strategies or approaches could U.S. regulatory agencies consider invoking to ensure that the audits of non-U.S. companies with securities traded on U.S. markets are adequate?

There are a few alternative strategies that U.S. regulatory agencies could consider invoking. One of those would be making a regulation that mandates accurate financial activities. It is also important that a firm is able to do a proper investigation and making sure proper audit procedures are in place for effective fraud detection would be a good strategy. In an article about uniform accounting standards it stated, “Uniform standards have the benefit of easing interpretation of financial reports across the investor community” (Ray, 2018). In the same way that uniform standards help the users of financial statements, the implementation of fraud investigation procedures would help prevent fraud.

Since ethical and moral values vary from culture to culture and nation to nation, does this mean that a global profession, such as the accounting profession, cannot have a uniform ethical code? Explain.

I would argue that this does not mean that the accounting profession cannot have a uniform ethical code. When it comes down to it accounting is the tracking of the numbers of a business and that is not different from country to country. Because accounting is dealing with the money of a company, there are temptations to commit fraud. The reason a uniform ethical code is in place is to help prevent fraud and that does not differ from culture to culture. There may be certain cases that the ethical code might need to change slightly, but overall a uniform ethical code would be able to help prevent fraud across all countries.

It is also important to note that as Christians our ethical code comes from the Bible which goes across all countries. Matthew 24:14 states, “And this gospel of the kingdom will be proclaimed throughout the whole world as a testimony to all nations, and then the end will come” (Crossway, 2011). The Bible sets our standard as Christians and it is for everyone so therefore, we should proclaim His name everywhere we go.

References

He, D., You, K., Li, W., & Wu, J. (2021). Determinants of Technology Adoption: Evidence from the Chinese Banking Industry. Emerging Markets Finance & Trade, 57(11), 3167–3189. https://doi.org/10.1080/1540496X.2019.1678027

Nair, L. B. (2021). From “Whodunit” to “How”: Detective Stories and Auditability in Qualitative Business Ethics Research. Journal of Business Ethics, 172(2), 195–209. https://doi.org/10.1007/s10551-020-04479-4

Balla, S. J., & Xie, Z. (2020). Consultation as policymaking innovation: comparing government transparency and public participation in China and the United States. Journal of Chinese Governance, 5(4), 525–545. https://doi.org/10.1080/23812346.2020.1769539

Elmghaamez, I. K., & Elmagrhi, M. H. (2022). Diffusion theory, transnational antecedents and International Standards on Auditing adoption around the world. International Journal of Auditing, 1. https://doi.org/10.1111/ijau.12273

Knapp, M. C. (2001). Contemporary auditing: Real issues & cases. South-Western College Publishing.

Crossway. (2011). In ESV study Bible: English standard version.

IAASB – International Auditing and Assurance Standards Board. (2015, April). The Auditor’s Responsibilities Relating to Other Information. Retrieved February 13, 2022, from https://www.ifac.org/system/files/publications/files/ISA-720-(Revised).pdf

Ray, K. (2018). One Size Fits All? Costs and Benefits of Uniform Accounting Standards. Journal of International Accounting Research, 17(1), 1–23. https://doi.org/10.2308/jiar-51974

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Modified Internal Rate of Return (MIRR)

January 4, 2023/in Uncategorized /by

Lavender Berhad (Lavender) is evaluating the feasibility of Project A, which is a new line of business that is different from its existing business operations. The directors are pursuing a corporate s

Lavender Berhad (Lavender) is evaluating the feasibility of Project A, which is a new line of business that is different from its existing business operations. The directors are pursuing a corporate strategy of diversifying into a new line of business because its existing business is facing declining sales due to substitute products introduced by the competitors. Below are the detailed cash flow projections for Project A, with 4 years of useful life: 1. Fixed assets [capital allowance is claimable on a 25% reducing balance basis] Year 0: Cost of investment is RM25 million Year 4: Disposal value is RM2 million 2. Working capital Year 0: Initial investment required is RM3 million Year 1: Investment required is increased to RM5 million Year 2: Investment required is increased to RM6 million 3. Revenue Year 1: RM5 million Year 2: RM8 million Year 3: RM15 million Year 4: RM25 million 4. Operating costs Year 1: RM2 million Year 2: RM3 million Year 3: RM5 million Year 4: RM7 million 5. Corporate taxation rate 24% (payable in the same year when profit is earned) 6. Volatility of project cash flows RM0.2 million per annum Lavender’s existing business equity beta is 0.95 and gearing ratio (debt:debt+equity) is 60%. A proxy for the new line of business has an equity beta of 1.08 and gearing ratio (debt:debt+equity) of 50%. Assume that the debt betas for both companies are zero. Corporate taxation rate is 24%. Lavender has sufficient taxable profits to claim all the tax reliefs available. Lavender’s pre-tax cost of debt is 10%. Risk-free securities are yielding 4% and the market risk premium is 8%, which are assumed to remain constant for the foreseeable future. Project A has the potential to be expanded into the export markets starting from the end of Year 3. Preliminary appraisal estimated that the investment cost of RM20 million will generate a net present value of RM4 million (as at the end of Year 3). Cost of capital is 12% and the volatility of cash flows is 35%. The Business Development Director has proposed two additional investment projects that are focused on improving the existing business operations in order to increase Lavender’s market share and profitability. However, the Chief Financial Officer (CFO) is facing capital constraints this year due to the overall gearing ratio target of 60% being imposed by the board. Therefore, only RM50 million in total financing will be raised in Year 0. It is anticipated that there will no longer be any capital constraints from Year 1 onwards. The following are details of the two additional investment projects, which are not divisible: a) Project B – This is an investment into product development to upgrade the existing product in order to compete more effectively against the substitute products introduced by the competitors. Initial investment cost of RM15 million is required in Year 0 and it will generate a positive net present value of RM2 million over its 4 years of useful life. b) Project C – This is an investment to automate the existing business operations in order to improve the productivity and reduce overhead costs so as to improve the profit margin. Initial investment cost of RM20 million is required in Year 0 and it will generate a positive net present value of RM8 million over its 4 years of useful life. The value of the option to expand Project A into the export markets should be added to Project A’s existing net present value when comparing against Project B and Project C in order to make the capital rationing decision. Project A is also not divisible. Required: The CFO has requested you, the Financial Analyst, to write a report to: (a) Calculate the net present value (NPV) of Project A. (12 marks) (b) Based on the figures in (a) above, calculate the following in respect of Project A: • Modified Internal Rate of Return (MIRR); (3 marks) • Macaulay duration; and (4 marks) • Value at risk (VAR) at 95% confidence level. (3 marks) (c) Interpret the results of all the calculations in (a) and (b) above. (4 marks) (d) Calculate the value of the option to expand Project A into the export markets. Comment on the result. (8 marks) (e) Recommend (with reasons) an appropriate method of capital rationing decision in choosing between Project A, Project B and Project C. Provide a conclusion. (6 marks) (f) Advise on THREE (3) NON-FINANCIAL factors that should be considered before making the final decision in choosing between Project A, Project B and Project C. (6 marks) Professional marks will be awarded for format, style, structure and clarity of discussion. (4 marks) [Total: 50 marks]