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a. What if it is an existing firm, rather than an entrepreneur, that discovers an idea with a positive NPVwho benefits (financially) from the discovery?
a. What if it is an existing firm, rather than an entrepreneur, that discovers an idea with a positive NPVwho benefits (financially) from the discovery? Current shareholders? Future shareholders? Debt holders? If again $1MM were needed for the firms investment opportunity, how many shares would the existing firm have to issue to raise that amount via equity?
b. How does the existence of positive NPV investment projects affect the relationship between the book value and the market value of a firm?
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