You have just been hired as a consultant to help a firm to decide which of three options to take to maximize the value of the firm over the next three years. The following table shows year-end profits for each option. Interest rates are expected to be stable at 8 percent over the next three years. 
a. Discuss the difference in the profits associated with each option. Provide an example of real-world options that might generate such profit streams.
b. Which option has the greatest present value?
Definitions:
Group Norms
Shared expectations and rules that guide behavior of members within a group, influencing conformity and group dynamics.
Social Comparisons
The process of comparing oneself to others in order to evaluate or enhance one's own qualities or abilities.
Ethical Issue
A dilemma or situation that requires a choice to be made between competing values or principles.
Milgram's Obedience
A series of experiments conducted by Stanley Milgram, demonstrating people's willingness to obey authority figures even when asked to perform actions conflicting with their personal conscience.
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