IV. Coast Corporation's research and development department has a a proiect to develop a new product which is expected to be very profitable, However, this very expensive product requires approval...

Extracted text: IV. Coast Corporation's research and development department has a a proiect to develop a new product which is expected to be very profitable, However, this very expensive product requires approval from the company's controller, J.Davis. Since the corporate profits have been decreasing lately, Davis hesitates to approve a project that will incur significant expenses that cannot be capitalized. To problem, he's thinking about hiring a firm to develop this product and purchasing the patent of the product from this firm. overcome this Required: a. Why doesn't_Davis prefer producing the product internally, and what are the ethical issues in this situation. b. What would you do if you were in Davis's place?