Ratios calculated from interim financial reports that use one balance sheet account and one income statement or statement of cash flows account are questionable because the income statement and statement of cash flows values represent accumulated amounts for less than one year, while the balance sheet values are full values similar to those at year end. The current ratio would be the least questionable ratio because it is calculated using two balance sheet accounts.

While Janet is not obligated to report the matter to the authorities under the Code and
Standards, she must dissociate herself from violations of the law. After seeking competent and objective legal advice, she must encourage the company to report the violations and remedy the situation. If the board or the company refuses to do so, she should resign from the board.

Due to the unique features of this property, the cost approach would be most appropriate.

Step 1. Find NPV of each project: Note: NPV= (PV of CF)-( Cost)Project A: Given:
PMT=45,000; N = 5; I = 10% -> Find: PV = 173,997 -> NPV = 173,997-150,000 = 23,997Project B: Given:
PMT=162,912; N = 5; I = 13% -> Find: PV = 572,999 -> NPV = 572,999-570,000 = 2,999Since the projects are independent and they are both positive NPVs, the optimal choice would be to choose both.