Capital Budgeting Proposals Should Be Evaluated as If the Project

question 47

Multiple Choice

Capital budgeting proposals should be evaluated as if the project were financed:

• A) entirely by debt.
• B) entirely by equity.
• C) half by debt and half by equity.
• D) with the highest cost source of funds, to be safe.

---

Definitions:

Hypertonic

A solution with higher osmotic pressure (solute concentration) than another solution, leading cells to lose water.

Isotonic

A solution that has the same salt concentration as cells and blood, preventing net water movement across cell membranes.

NaCl

Sodium chloride, commonly known as table salt, is an ionic compound consisting of sodium and chloride ions.

Solute

Substance that is dissolved in a solvent, forming a solution.