23.A large oil company is looking at capitalizing on a large oil reserve that has been discovered in a foreign country. The capital project to extract this oil would involve many risks and uncertainties for the company. Which of the following is not an effective means of mitigating the risk prior to initiating a capital project?

A) Consider a joint venture with a local company.

B) Prepare detailed scenario analysis.

C) Offer monetary compensation to those in political power to ensure access.

D) Insert real elements into the discounted cashflow analysis of the project.

E) Assess the political stability, accessibility, and openness to foreign investment in the country.

24.Which of the following is NOT an example of the negative effects that a poor-quality product could have on an organization's profitability?

A) Takata airbag inflaters.

B) The Fisher-Price Rock 'n Play sleeper.

C) Boeing's 737 Max jet.

D) Toyota's Corolla sedan.

E) All of the above are examples of poor quality.

28.In making sound capital budgeting decisions, the principal focus is on:

A) After-tax cash flow amounts only.

B) Timing of the cash flows only.

C) After-tax cash flow amounts and the timing of these cash flows.

D) Accounting-based measures of revenues and expenses.

E) Nonfinancial performance indicators of various projects under consideration.

39.You have been asked by your boss to compile a list of costs of nonconformance for the cost of quality report (COQ). Which of the following costs would you NOT include?

A) Lost contribution margin due to canceled orders.

B) Costs to restore reputation.

C) Unplanned machine downtime due to repair or rework.

D) Costs to inspect incoming raw materials.

E) All of the above are considered nonconformance costs.