Key Topics: Key Stakeholder Group , pricing decision , Decision rule , evaluation of investment decisions

Description: This question requires evaluating the suitability of existing performance measures, suggesting alternative performance measures, and discussing the power and interests of three stakeholder groups. The next part of the question asks to evaluate the pricing decision of a new product considering the risk attitude and to discuss the drawbacks of the suggested decision rule. The last part of the question asks to evaluate which of the two new investment projects to undertake and to evaluate the suitability of the numerical technique.