This finance assignment explores various aspects of financial management, including specific and market risk, and agency problems. It delves into Environmental, Social, and Governance (ESG) factors, comparing and contrasting Net Present Value (NPV) and Profitability Index (PI) for investment decisions. The assignment includes calculations for profitability index and NPV, providing recommendations based on capital budgeting constraints. Furthermore, it examines the Capital Asset Pricing Model (CAPM), its application in determining security mispricing, and its use in evaluating investment projects, providing a comprehensive analysis of financial concepts and their practical applications. The document concludes with a detailed analysis of project selection based on CAPM calculations.