In Utilizing the Investment Opportunity Schedule and the Weighted Marginal

question 38

Multiple Choice

In utilizing the investment opportunity schedule and the weighted marginal cost of capital, a capital project will be

• A) acceptable as long as the marginal return equals or exceeds the weighted marginal cost of capital.
• B) unacceptable if the marginal return equals the weighted marginal cost of capital.
• C) unacceptable if the marginal return equals or exceeds the weighted marginal cost of capital.
• D) acceptable as long as the marginal return equals or exceeds the average cost of capital over all levels of needed funding.

---

Definitions:

Sample Size

The number of observations or data points selected from a population for the purpose of statistical analysis, which can influence the accuracy and reliability of results.

Normally Distributed

Describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Probability

A measure of the likelihood of occurrence of a particular event or outcome, often expressed as a number between 0 and 1.

NORM.DIST

A function in various statistical software that returns the normal distribution for a specified mean and standard deviation.