Q8-7. In what way is the NPV consistent with the principle of shareholder wealth maximization? What happens to the value of a firm if a positive-NPV project is accepted? If a negative-NPV project is accepted?
Q9-7. Why must incremental after-tax cash flows rather than total cash flows be evaluated in project analysis?
Q10-4. Why do you think it is important to use the market values of debt and equity rather than book values to calculate a firm's WACC?