If a Company Is in the Situation of Having Unlimited

question 19

Multiple Choice

If a company is in the situation of having unlimited capital funds, the best decision rule, considering only financial factors, is for the company to invest in all projects in which:

• A) The payback period is short.
• B) The accounting (book) rate of return (ARR) is greater than its current return on invested capital (ROI).
• C) The net present value (NPV) is greater than the cost of capital.
• D) The internal rate of return (IRR) is greater than zero.
• E) The NPV is greater than zero.

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Definitions:

Fetal Movements

The motions made by a developing fetus within the uterus, including kicks, rolls, and stretches, often detectable by the pregnant individual.

Gestation

The process of carrying or being carried in the womb between conception and birth, commonly referred to as the period of pregnancy.

Embryonic Disk

The platelike inner part of the blastocyst that differentiates into the ectoderm, mesoderm, and endoderm of the embryo.

Blastocyst

A stage within the germinal period of prenatal development in which the zygote has the form of a sphere of cells surrounding a cavity of fluid.