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Explain the phenomena of 'overinvestment' and 'underinvestment' in relation to a firm's investment strategy and its relationship to NPV. In each case give a reason

Explain the phenomena of 'overinvestment' and 'underinvestment' in relation to a firm's investment strategy and its relationship to NPV. In each case give a reason as why a firm or its management might engage in 'overinvestment' and 'underinvestment'?

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