Given the Goal of Maximization of Firm Value and Shareholder

question 66

Essay

Given the goal of maximization of firm value and shareholder wealth,we have stressed the importance of net present value (NPV). And yet,many financial decision-makers at some of the most prominent firms in the world continue to use less desirable measures such as the payback period and the average accounting return (AAR). Why do you think this is the case?

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Definitions:

Psychotherapist

A trained professional who employs psychological methods particularly in the treatment of mental illness, emotional challenges, and behavioral disturbances.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thoughts that are significantly disruptive to one’s personal functioning.

Alcohol Misuse

The consumption of alcohol in a manner or quantity that is harmful to the individual's health or social functioning.

Psychological Disorder

A mental disorder characterized by patterns of thought, emotion, or behavior that are deviant, distressing, and dysfunctional.