Because good transportation will provide jobs so if you do not have a good transportation system there will be lost jobs also a lack of good transportation will increase congestion on roads.
It effects the economy because that's another car that is having to take up oil and is another step to wasting natural resoources. Also the cars fumes pollute the air and everywhere around us.
Answer:
The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.
Explanation:
Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).
As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.
On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.
Her decision is known as a "satisfice" decision
