A Firm Should Continue to Invest in Capital Budgeting Projects

question 51

Multiple Choice

A firm should continue to invest in capital budgeting projects until its marginal cost of capital is:

• A) equal to the net present value (NPV) of the last project purchased.
• B) equal to the internal rate of return (IRR) of the first project purchased.
• C) equal to the marginal return generated by the last project purchased.
• D) equal to the cash generated by the last project purchased.
• E) equal to the weighted average cost of all the projects purchased.

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Definitions:

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Meditation

A practice of focused concentration, often for relaxation, stress reduction, and self-awareness.

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Actions or environments that stifle innovation or creative thinking, often due to excessive constraints or criticism.

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