You have been assigned the role of lead internal auditor. Your task is to carryout the annual assessment of the production line maintenance department. When planning for this audit, which of the following must be completed?
R plc is considering an investment of $1,100,000 in a new machine which is expected to have substantial cash inflows over the next five years. The annual cash flows from this investment and their probability are shown below: Annual cash flow ($)Probability 200,000 0.4 280,000 0.5 350,000 0.1 At the end of its five-year life, the asset is expected to sell for $100,000. The cost of capital is 5%. What is the Expected Net Present Value? Give your answer to the nearest whole $.
GHY is a listed company. Tom isGHY'sCEO and Peter isitsnon-executive Chair of the Board. Tom and Peterbothhave substantial relevant business and industrial experience andboth are believed to have considerable integrity. Tom and Peter quickly developed a good working relationship after Peter's appointment. They have become close friends. Tom briefs Peter on every aspect of the business. Tom and Peter jointlyagreethe agenda foreveryboard meetingandboth agree on the manner in which matterswill be presented to theboard. Taking account of the principles of goodcorporategovernance, which of the following statements is correct?
A capital investment project shows a NPV of 3,450 at a discounted rate of 8% and an NPV of 1,210 at a discounted rate of 9%. Whatistheinternal rate ofreturn?
The management of U isreviewing internal controls throughout the company. Ithasnoted the following:- 1. In the trade receivables section, journal adjustments are made by the clerks, without any reference to their supervisor. Journal adjustments may relate to sales returns, discounts allowed, or transfers between accounts. 2. In the purchasing department, the purchasing manager selects and approves all suppliers, astheyarethe only person with sufficient experience to do so. They usea very limited number of suppliers becausethey can rely on these suppliers to provide goods of the quality required at a competitive price. They donot keep any documents in relation to negotiations with other potential suppliers or other quotes obtained. In relation to the above, which of the following statements are valid?