Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 41

(Appendix B): What decision criterion should be used to choose investment projects for a firm with unlimited funds available at a weighted-average cost of 10% (after tax) Can the firm use the same decision criterion if it has only a limited amount of available funds, say $100 million Explain.