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If a Company Is in the Situation of Having Unlimited

Question 19

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.

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