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State about the Net present value
Net present value maximisation is superior to the profits maximisation as an operational objective. As a decision criterion, it involves a comparison of value to cost. An action which has a discounted value - reflecting both risk and time which exceeds its cost can be said to create value. Such actions must be undertaking. On the other hand, actions, with lees value than cost, reduce wealth and must be alternative with greatest net present value must be selected.
Accounting Principle Accounting principles are the primary assumptions, rules of operation, and necessary features that make up the framework for the construction of accountin
Discuss how a business might limit agency problem between management and creditors
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