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Short-term and long-term consequences of paying

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In some countries, businessmen and businesswomen are kidnapped for ransom. When this occurs a business needs to decide whether to pay the ransom or not. What are the short-term and long-term consequences of paying or failing to pay the ransom? Devise an economic rule to determine when it would be in your best interest as CFO to pay the ransom demand.

Reference no: EM131665788

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