It was a business decision in 2008 when the Outback Bowl selected Iowa over Northwestern, even though NW had a better conference record and beat the Hawks head-to-head.
It will be a business decision in a couple of weeks when the Outback Bowl selects Penn State over Iowa as the Big Ten's 4th selection. No way do they want to pass up Joe Pa's potential final game, and Penn State fans will travel very well for this game.
Iowa is likely Gator Bowl bound, though they could fall lower if they lose to Minnesota on Saturday.