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    Business Finance: Ethics and Finance

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    1) Why do many business managers feel that ethical behavior is essential to the profitability and survival of their firm?

    2) Your Uncle left you a some of money and you need to calculate what is the most fiscally beneficial way to receive your payout. There are 3 options:

    1. Take $10,000 now
    2. Take 8 $2,000 payments at the end of the year for the next 8 years or
    3. Take a $24,000 lump sum payment at the end of 8 years.

    If the discount rate is 8 percent, which is the best option?

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    Question 2
    Compute the present value of each of the option.
    Option 1
    NPV = $10,000
    Option 2
    NPV = ...

    Solution Summary

    This solution provides a detailed step by step explanation of the given business finance problems.