An investment opportunity/cost schedule
A. ranks capital projects by net present value, from highest to lowest, and then compares the discount rate to the marginal cost of capital.
B. ranks capital projects by internal rate of return from the highest to lowest and marginal cost from lowest to highest, and then compares the marginal return to the marginal cost.
C. ranks capital projects by internal rate of return from lowest to highest and marginal cost from highest to lowest, and then compares the marginal return to the marginal cost.
D. ranks capital projects by net present value, and then compares the marginal return to the cost.
Answer:B
An investment opportunity/cost schedule
A. ranks capital projects by net present value, from highest to lowest, and then compares the discount rate to the marginal cost of capital. B. ranks capital projects by internal rate of return from the highest to lowest and marginal cost from lowest to highest, and then compares the marginal return to the marginal cost. C. ranks capital projects by internal rate of return from lowest to highest and marginal cost from highest to lowest, and then compares the marginal return to the marginal cost. D. ranks capital projects by net present value, and then compares the marginal return to the cost.