Topic: Ford Pinto 1. Introduce the company (e.g. name, type of business, its corporate structure); 2. Define and explain the core ethical dilemma confronting the company, with pertinent facts; this includes why it is an ethical issue; clearly define the dilemma; be clear as to the company’s situation and its ethical choices – the action […]
Identify and describe a long-term investment project (either real or fictional) that would likely require significant capital commitment.
Why might companies disregard a positive NPV? MIT professor of financial economics Stewart C. Myers asserts that different decision rules might apply when investments are long-term rather than short-term (Myers, 1977). Financial managers may rationalize that it is in their immediate interest to invest in short-term projects because they bring the most shareholder benefits; this […]