1 (a) What is the common agency problem faced by shareholders? Describe TWO (2) situations in which stockholders can ensure that management's and stockholders' interests are aligned? (b) You are a finance director of a company in need of capital for future growth opportunities. Based on your knowledge and experience, advise your Chief Executive Officer THREE (3) different ways in which capital can be obtained from suppliers of capital. Question 4 XYZ Company is evaluating 2 projects (in which only one may be accepted) with an expected life of 3 years. The initial investment for either projects are RM1,000,000 each. These are the following net cash inflows: - Project 1 (RM) Project 2 (RM) __________________________________________ Year 1 300,000 600,000 2 1,000,000 600,000 3 400,000 600,000 Depreciation for the projects is calculated on a straight-line basis. Both projects have no resale value at the end of their useful lives. Required: (a) Calculate the net present value (NPV) of both projects. (b) Calculate the payback period for both projects. C).Calculate the accounting rate of return for both projects. (d) Based on your evaluation in parts (a) - (c), which project would you recommend the company to invest in? Give TWO (2) reasons why. (e) What are TWO (2) non-financial reasons to consider when recommending which project should be invested in