In the "Bystander's Three Options" Case, Option (Iii) Is Sacrificing

question 20

Multiple Choice

In the "Bystander's Three Options" case, option (iii) is sacrificing oneself to save the five workers. Thomson says that option (iii) is

• A) morally required.
• B) not permissible.
• C) a good deed, but not morally required.
• D) a ceteris paribus principle.

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Definitions:

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, focusing solely on cash flows.

Net Present Value (NPV)

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.

Zero Cost of Capital

A theoretical situation where a company or project does not incur any cost to obtain and use capital, implying no interest expenses for debt or dividend expectations for equity.

Net Present Value (NPV)

Net Present Value is a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the present value of all cash inflows and outflows using a specified discount rate.