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Q2 a) What is the agency problem i.e. (Agency theory)? b) Give one example from corporate finance decisions on agency theory. c) Give one example

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Q2 a) What is the "agency problem" i.e. (Agency theory)? b) Give one example from corporate finance decisions on agency theory. c) Give one example from Financing corporation decisions on agency theory. Q3 Why would the internal rate of return (IRR) in certain situations leads to a conflicting conclusion? Explain when does that happen with hypothetical numbers and graph your case. Q4 An investment requires a net investment of SR. 100,000. The project is expected to generate an annual cash flow of SR. 28,000 per year for the next 5 years. If the cost of capital is 12%. Determine the payback period of this project

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