The appropriate discount rate used to calculate the present value of a project is

the expected rate of return offered by other projects with the same risk characteristics

the profit margin on projects undertaken by firms in the same industry

the return offered by the firms existing business

none of these

Which of the following would help alleviate the principal-agent problem between manager and shareholders due to separation of ownership and management?

Monitor the manager

Compensate the manager based on the firms stock performance

Hire outside independent auditors to check the accounting numbers reported by the manager

All of these