Miss
Assignment 3
An ABC poll in the spring of 2004 found that one-third of students age 12 – 17 admitted to cheating and the percentage increased as the students got older and felt more grade pressure. If a book entitled “How to Cheat: A User’s Guide” would generate a positive NPV, Assume the publishing company has a cost of capital of 8% and estimates it could sell 10,000 volumes by the end of year one and 5,000 volumes in each of the following two years. The immediate printing costs for the 20,000 volumes would be $20,000. The book would sell for $7.50 per copy and net the company a profit of $6 per copy after royalties, marketing costs and taxes.
k=8% quantity cost profit
-20,000 -20,000 -20,000
10,000 75,000 60,000
5000 37,500 30,000
5000 37,500 30,000
Would it be proper for a publishing company to offer the new book? Is there is any conflict between your financial analysis and the ethical corporate social responsibility for this publisher?
- Although the company got a positive NPV of 85,090.6874 no it is not proper for the company to publish this book and gain revenue out of unethical activity. Yes there are conflict between the two activities, because although the work of a publishing company is to publish books, they are not allowed to publish such a book. Because this kind of books makes the students careless and not responsible society. They must be responsible to accept publishing the useful books and not being in conflict of interest due to thinking only about gaining revenue.
What are the implications of your decision on the stakeholder’s benefits?
- The company who are engaging in such unethical activities will reflect those actions on it’s Stakeholders, so as their company they will be not responsible and careless about their work and they will have the incentive to cheat over their bosses.
What are the alternatives practices which enhance the ethical
An ABC poll in the spring of 2004 found that one-third of students age 12 – 17 admitted to cheating and the percentage increased as the students got older and felt more grade pressure. If a book entitled “How to Cheat: A User’s Guide” would generate a positive NPV, Assume the publishing company has a cost of capital of 8% and estimates it could sell 10,000 volumes by the end of year one and 5,000 volumes in each of the following two years. The immediate printing costs for the 20,000 volumes would be $20,000. The book would sell for $7.50 per copy and net the company a profit of $6 per copy after royalties, marketing costs and taxes.
k=8% quantity cost profit
-20,000 -20,000 -20,000
10,000 75,000 60,000
5000 37,500 30,000
5000 37,500 30,000
Would it be proper for a publishing company to offer the new book? Is there is any conflict between your financial analysis and the ethical corporate social responsibility for this publisher?
- Although the company got a positive NPV of 85,090.6874 no it is not proper for the company to publish this book and gain revenue out of unethical activity. Yes there are conflict between the two activities, because although the work of a publishing company is to publish books, they are not allowed to publish such a book. Because this kind of books makes the students careless and not responsible society. They must be responsible to accept publishing the useful books and not being in conflict of interest due to thinking only about gaining revenue.
What are the implications of your decision on the stakeholder’s benefits?
- The company who are engaging in such unethical activities will reflect those actions on it’s Stakeholders, so as their company they will be not responsible and careless about their work and they will have the incentive to cheat over their bosses.
What are the alternatives practices which enhance the ethical