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Beige Inc Is Evaluating Three Capital Budgeting Projects Whose Internal Rates

Question 9

Multiple Choice

Beige Inc. is evaluating three capital budgeting projects whose internal rates of return (IRRs) are greater than the firm's marginal cost of capital (MCC) . Beige should choose:


A) the projects that minimize its marginal cost of capital.
B) all of the projects whose internal rates of return (IRRs) are greater than the firm's weighted average cost of capital WACC) .
C) the projects that maximize its dividend payout.
D) the projects that generate the greatest combination of cash inflows.
E) the one (single) project that has the highest net present value (NPV) .

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