Question: How does the net present value (NPV) rule relate to the goal of maximizing shareholder wealth? Under what conditions would you expect the NPV and

  • How does the net present value (NPV) rule relate to the goal of maximizing shareholder wealth?
  • Under what conditions would you expect the NPV and internal rate of return (IRR) rules to result in the same accept or reject decision?
  • What is the rationale behind the payback rule?

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