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.