Using the Weighted Average Cost of Capital as the Required

question 53

Multiple Choice

Using the weighted average cost of capital as the required rate of return for every project will

• A) cause a firm to reject projects that should have been accepted.
• B) cause a firm to accept projects that were too risky.
• C) result in maximization of shareholder wealth.
• D) A and B above

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Definitions:

CPM/PERT

A combination of the critical path method and the program evaluation and review technique.

Project Management Tool

A software or system designed to assist in planning, organizing, and managing resources to achieve project goals and objectives.

After-Action Review

A structured review or debrief process for analyzing what happened, why it happened, and how it can be done better by the participants and those responsible for the project or event.

Control Process

A systematic effort to set performance standards, measure performance, and take corrective action as needed.