What is the issue here and how can it be resolved

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Frank Wood, the owner of Cozy Corner Cabinets (CCC), has just hired Joe Boss to manage his company. Instead of using a flat salary, the two men have agreed that Joe will be paid 15 percent of the profits at the end of each year. CCC currently has three project opportunities to choose from, and can only choose one of them. Project A will generate profits of $75,000 per year, and will increase the value of CCC by $145,000. Project B will generate profits of $63,000 per year, and will increase the value of CCC by $153,000. Project C will generate profits of $68,000 per year, and will increase the value of CCC by $138,000. Which project is Joe Boss likely to choose and why? As the owner of CCC, which project would Frank prefer? What is the issue here and how can it be resolved?

Reference no: EM132537846

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