The principal-agent problem from chapter 1 refers to OA) Managers pursuing activities that benefit themselves at the expense of shareholders. B) Governments trying to regulate the behavior of corporations. c) Stock brokers not serving the best interests of investors. D) Stock markets with too high bid-ask spreads causing excessive transaction costs for investors. E) None of the above. n 14-06-22 Use the data below to answer the question. Note, each of the projects' inflows are perpetuities or growing perpetuities. Initial Project Investment A B C D 14% $63,000 $300,000 $400,000 $80,000 $1,200,000 $400,000 $104,000 $900,000 $300,000 $50,000 3% $325,000 The incremental IRR of switching from Project A to Project B is closest to: 5% undefined First Year Growth Cash Flow Rate 3% 3% 0% 20% Cost of Capital 8% NPV $960,000 8%. 8% 1196