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If a firm is under financial distress, the management has the incentive to undertake a project even if its NPV is negative. If he project

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"If a firm is under financial distress, the management has the incentive to undertake a project even if its NPV is negative. If he project succeeds, the firm may be able to avoid bankruptcy but if the project fails, the debt- holders takeover the firm with less valuable assets. In other words, the project benefits shareholders at the expense of debt-holders." True or false? Select one: a. False O b. True

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