1) Discuss 12 principles of foundational corporate finance.
2) Compare and contrast accounting net income and cash flows.
3) Compare and contrast the market value of an asset or liability from the book value.
Question:
With respect to those projects with higher individual IRR's, how does this impact the outcome of their financing decisions? What is the relationship of risk associated with a higher IRR? How does this relationship reflect the 'Risk-Return Trade-Off' principle?