Shareholders are happy with the existing management

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Which of the following can cause a project to have multiple IRRs? A) The project has a large initial outlay. B) A ten-year project requires an initial investment and has a negative cash flow in the last year of the project's life. C) A project has negative cash flows in the first three years, but positive cash flows thereafter. D) Whenever project cash flows are conventional. E) With mutually exclusive investments Chemical Mines has 5,000 shareholders and is preparing to elect two new board members.

You do not own enough shares to personally control the elections but are determined to oust the current leadership. Likewise, no other single shareholder owns sufficient shares to personally control the outcome of the election. Which one of the following is the most likely outcome of this situation given that some shareholders are happy with the existing management?

A. negotiated settlement where each side is granted control over one of the open seats

B. protracted legal battle over control of the board of directors

C. arbitrated settlement where the arbitrator determines who will be elected to the board

D. control of the board decided without your influence

E. proxy fight for control of the board

Reference no: EM13885475

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