You Have Some Property for Sale and Have Received Two

question 126

Multiple Choice

You have some property for sale and have received two offers. The first offer is for $89,500 today in cash. The second offer is the payment of $35,000 today and an additional $70,000 two years from today. If the applicable discount rate is 11.5 percent, which offer should you accept and why?

• A)You should accept the $89,500 today because it has the higher net present value.
• B)You should accept the $89,500 today because it has the lower future value.
• C)You should accept the first offer as it has the greatest value to you.
• D)You should accept the second offer because it has the larger net present value.
• E)It does not matter which offer you accept as they are equally valuablE.

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Definitions:

Cultural Relativism

The belief that a person's beliefs, values, and practices should be understood based on that person's own culture, rather than be judged against the criteria of another.

Ethical Absolutism

The ethical belief that there are absolute standards against which moral questions can be judged, and that certain actions are right or wrong regardless of the context of the act.

Individual Relativism

The philosophical idea that ethical beliefs and values are relative to the individual's subjective preferences.

Ethical Decision-Making

The method of assessing and selecting options in a way that aligns with moral values.