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Sometimes when management decisions are reached, the investment project with the highest NPV or IRR is not selected.This occurs because:
Retained Earnings Statement
A financial statement that shows how a company's retained earnings have changed during a specific period.
Fiscal Year
A one-year period used for financial and tax reporting purposes, which may or may not align with the calendar year, depending on the company or organization.
Stock Split
A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.
Market Price
The current value at which an asset or service can be bought or sold in the marketplace.
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