Author Question: According to the Net Present Value (NPV) rule, managers choose to invest if a. The NPV of the ... (Read 77 times)

dmcintosh · **on:** Jul 1, 2018

According to the Net Present Value (NPV) rule, managers choose to invest if
a. The NPV of the project is less than zero
b. The NPV of the project is greater than zero
c. The NPV of the project is equal to zero
d. The NPV of the project is equal to the cost of capital

Question 2

The types of problems in principal-agent relationships typically include
a. adverse selection - whom to hire
b. moral hazard - how to motivate workers
c. uncertainty - how many workers will be needed
d. Both A&B