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The Fastrack Transportation Company has financed a large part of its facilities with long-term debt. The company is now in deep financial distress. Explain why

The Fastrack Transportation Company has financed a large part of its facilities with long-term debt. The company is now in deep financial distress. Explain why the shareholders might refuse to inject more capital into the company even though there is a safe project with positive NPV that might turn the company around.

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