Positive NPV : Identify and describe a long-term investment project (either real or fictional) that would likely require significant capital commitment.
Positive NPV 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 is, in other words, the so-called agency problem. However, what could be the long-term consequences of that strategy? Watch the short agency problem video (7:14) below for an explanation … Read more