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Buy-sell agreement may specify that the shares be valued strictly at their fair market value as:
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Answer: A
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XY can choose from four mutually exclusive projects. The projects will each last for one year and their net cash inflows will be determined by market conditions. The forecast net cash inflows for each of the possible outcomes are shown below.
If the company applies the maximin criterion the project chosen would be:
A. Project D
B. Project B
C. Project A
D. Project C
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