Assuming That a Firm Has No Capital Rationing Constraint and That

question 58

Multiple Choice

Assuming that a firm has no capital rationing constraint and that a firm's investment alternatives are not mutually exclusive, the firm should accept all investment proposals

• A) for which it can obtain financing.
• B) that have a positive net present value.
• C) that have positive cash flows.
• D) that provide returns greater than the after-tax cost of debt.

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Definitions:

Single-Dimensional Array

An array consisting of a sequence of elements in a single row or column, accessed by a single index.

One-Dimensional Array

A linear list of elements that are accessed with a single index, storing elements of the same data type.

Array Component

A single element or value stored within an array.