A Firm Should Continue to Invest in Capital Budgeting Projects

Multiple Choice

A firm should continue to invest in capital budgeting projects until its marginal cost of capital is:

A) equal to the net present value (NPV) of the last project purchased.
B) equal to the internal rate of return (IRR) of the first project purchased.
C) equal to the marginal return generated by the last project purchased.
D) equal to the cash generated by the last project purchased.
E) equal to the weighted average cost of all the projects purchased.