How share prices should respond to management decisions

Reference no: EM131981025

Question: You just heard one of your colleagues saying that NPV=0 means that the project makes no profit no loss? Do you agree with your friend? Explain. Describe how share prices should respond to a (NPV=+) and a (NPV=-) management decisions. Consider only financial claimants to a firm's cash flows.

Reference no: EM131981025

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