The weighted marginal cost of capital is _________ function of total financing in dollars; the internal rate of return on individual projects is _________ function of the total capital investment in dollars.
A. an increasing; an increasing
B. a decreasing; an increasing
C. a decreasing; a decreasing
D. an increasing; a decreasing
Answer:D
The weighted marginal cost of capital is _________ function of total financing in dollars; the internal rate of return on individual projects is _________ function of the total capital investment in dollars.
A. an increasing; an increasing B. a decreasing; an increasing C. a decreasing; a decreasing D. an increasing; a decreasing