Firms value by adding debt to capital structure

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1. When discussing maximizing a firms value by adding debt to the capital structure. What are the two (2) opposing considerations when a firms management is contemplating such a change (adding more debt)? Please be as specific as possible and use short answers.

2. Andrea and Ellen are arguing over the use of NPV and IRR methods to evaluate projects. Yasmeen tells them they are arguing over nothing, because NPV and IRR methods always lead to the same accept/reject decisions for independent projects. Do you agree?

Reference no: EM131924662

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