Che Company recently initiated a postaudit program. To motivate employees to take the program ATC 16-5 Ethical Dilemma Postaudit . Gaines established a bonus program Managers receive a bonus equal to 10 percent of the amount which actual net present value exceeds the projected net present value Victor Holl manager of the North Westem Division, had an investment proposal on his desk when the new system was implemented. The in soment opportunity required a $250,000 initial cash outflow and was expected to return cash inflows of SLO per year for the next five years. Gaines' desired rate of return is 10 percent. Mr. Holt immediately luced the estimated cash inflows to $70,000 per year and recommended accepting the project. llll X Required Assume that actual cash inflows turn out to be $9.000 per year. Determine the amount of Mr. How's Is Mr. Holt's behavior in violation of any of the standards of ethical professional practice in Exhibit 10.19 of Chapter 10? Speculate about the long-term effect the bonus plan is likely to have on the company Recommend how to compensate managers in a way that discourages gamesmanship Design Elements: Abstract texture: OIngram Publishing: Video Camera icon: McGraw-Hill Educa Bent Check mark: McGraw-Hill Education: Look forward/backward icon: OMcGraw-Hill Education, Globe icon: McGraw-Hill Education: Globe with magnifying glass icon: McGraw Hill Education, Pen and paper icon: McGraw-Hill Education: Group Assignment icon: McGraw-Hill Education Ethics Cases icon: McGraw-Hill Education; Self-Study Review icon: Design Pics/Don Hammond: und Point de la Coubre lighthouse near Roy, France: Westend61/Getty Images