Risk is major concern of almost all investors

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Reference no: EM131956420

1. Risk is a major concern of almost all investors. When shareholders invest their money in a firm, they expect managers to take risk with those funds. What do you think are the ethical limits that managers should observe when taking risk with other people's money?

2. Why might it be rational for a small firm that does not have access to the capital markets to use the payback method rather than the NPV method?

Reference no: EM131956420

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