Multiple Choice
If a company is in the situation of having unlimited capital funds, the best decision rule, considering only financial factors, is for the company to invest in all projects in which:
A) The payback period is short.
B) The accounting (book) rate of return (ARR) is greater than its current return on invested capital (ROI) .
C) The net present value (NPV) is greater than the cost of capital.
D) The internal rate of return (IRR) is greater than zero.
E) The NPV is greater than zero.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: In making sound capital budgeting decisions, the
Q15: Pique Corporation wants to purchase a new
Q16: All of the following capital budgeting models
Q17: In applying the Capital Asset Pricing Model
Q18: Which of the following is not a
Q20: When we assume in our calculations for
Q21: Given two projects with the same total
Q22: A capital budgeting model that accounts for
Q23: For a capital investment project, a net
Q24: Which one of the following is the