Question: You are the CEO of Titan Industries and have just
You are the CEO of Titan Industries and have just been awarded a large number of employee stock options. The company has two mutually exclusive projects available. The first project has a large NPV and will reduce the total risk of the company. The second project has a small NPV and will increase the total risk of the company. You have decided to accept the first project when you remember your employee stock options. How might this affect your decision?
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