e$.$ Evaluate the results in parts $($a$)$ to $($d$)$ in the context of the principal$-$agent problem.

Evaluate the results in part $($a$)$ in the context of the principal$-$agent problem.

A$.$ There is a principal$-$agent problem as the decision by the CEO $($Dan$)$ does not align with the objective of shareholders for shareholder wealth maximization. Dan would accept the project as it increases his overall well$-$being, even though it would negatively affect the rest of the shareholders.

B$.$ There is no principal$-$agent problem because the CEO $($Dan$)$ would not accept the new project.

C$.$ There is no principal$-$agent problem as the decision by the CEO $($Dan$)$ aligns with the objective of shareholders for shareholder wealth maximization.

D$.$ There is a principal$-$agent problem as the decision by the CEO $($Dan$)$ does not align with the objective of shareholders for shareholder wealth maximization. Dan would not accept the project as it does not increase his overall well$-$being, even though it would be good for the rest of the shareholders.