Identify and describe a long-term investment project that would likely require significant capital commitment. If you were acting as a financial analyst, what factors would you consider in the decision to move forward or abandon the project?
Why might companies disregard a positive NPV? MIT professor of financial economics Stewart C. Myers asserts that different decision rules might apply when investments are long-term rather than short-term . Financial managers may rationalize that it is in their immediate interest to invest in short-term projects because they bring the most shareholder benefits; this is, […]