In what way is the npv consistent with the principle of


1. In what way is the NPV consistent with the principle of shareholder wealth maximization? What happens to the value of a firm if a positive NPV project is accepted? If a negative NPV project is accepted?

2. Can you name some industries where the payback period is unavoidably long?

3. What are the potential faults in using the IRR as a capital budgeting technique? Given these faults, why is this technique so popular among corporate managers?

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