[Bank Robbery] Safe Bank Was Robbed of a Significant Sum

question 88

Multiple Choice

[Bank Robbery] Safe Bank was robbed of a significant sum of cash by a robber later identified as Victor Victory. Safe Bank offered a reward of $10,000 to anyone who captured or provided information leading to the capture of Victor. Kareem, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Kareem arrested Victor at a restaurant in town. He found Victor after Ursula, Victor's girlfriend, told Kareem about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Kareem any of the reward money.
-In a lawsuit between the bank and Ursula, regarding the reward funds, who is likely to prevail and why?

• A) The bank is likely to prevail because Ursula only provided past consideration.
• B) The bank is likely to prevail because Ursula was tainted by being Victor's girlfriend.
• C) The bank is likely to prevail because no valid bilateral contract existed.
• D) Ursula is likely to prevail because a valid bilateral contract existed.
• E) Ursula is likely to prevail because an enforceable unilateral contract exists based on her provision of information leading to the capture of Victor.

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Definitions:

Profitability Index

A calculation that measures the profitability of an investment, determined by dividing the present value of future cash flows by the initial investment cost.

NPV Ranking

A method of evaluating investment opportunities by ranking them based on their Net Present Value, which estimates the present value of future cash flows minus initial investments.

IRR Ranking

The process of ordering investments or projects by their Internal Rate of Return, which estimates profitability.

Discounted Cash Flow

A financial analysis method that estimates the value of an investment based on its expected future cash flows, discounted to their present value.