Question: a. Explain differences between profit maximization and wealth maximization in business context. (5 marks) b. Idlan has been awarded a bonus for his outstanding work.

a. Explain differences between profit maximization and wealth maximization in business context. (5 marks) b. Idlan has been awarded a bonus for his outstanding work. His employer offers him a choice of the following stream as rewards for his excellent achievement. Determine the best option for Idlan if his opportunity cost is 8 percent. Explain your answer. Year Option 1 Option 2 Option 3 Option 4 0 20,000 7,500 10,000 7,500 7,000 W N 7,500 25,000 6,000 (15 marks)

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