Detailed Answer please

QUESTION 1 [40 MARKS] (i) Agency theory refers to: A B C D the directors existing to provide companies with the access to resources that they could not gain through market or management links. [1 Mark] (ii) Agency theory suggests that managers (the agents), particularly those of large, publicly-owned firms, may have different objectives from those of the A Workers B Subordinates Shareholders Employees C D providing value to all the company's stakeholders; the directors acting to ensure the best interest of the shareholders are being met; A B corporations providing value by combining the key factors of production in a manner than markets cannot; [1 mark] (iii) XYZ Inc. is starting the project at cost of $ 100,000. The project will generate cash-flow of $40,000, $ 50,000 & $ 50,000 in year 1, year 2 and year 3 respectively. Company's cost of capital is 10%. Calculate the NPV. (2 marks) $ 15,251.68 C D $ 12,551.68 $ 18,821.68 $11,255.68 [2 marks]