In utilizing the investment opportunity schedule and the weighted marginal cost of capital, a capital project will be
A. acceptable as long as the marginal return equals or exceeds the average cost of capital over all levels of needed funding.
B. unacceptable if the marginal return equals the weighted marginal cost of capital.
C. unacceptable if the marginal return equals or exceeds the weighted marginal cost of capital.
D. acceptable as long as the marginal return equals or exceeds the weighted marginal cost of capital.
Answer:D
In utilizing the investment opportunity schedule and the weighted marginal cost of capital, a capital project will be
A. acceptable as long as the marginal return equals or exceeds the average cost of capital over all levels of needed funding. B. unacceptable if the marginal return equals the weighted marginal cost of capital. C. unacceptable if the marginal return equals or exceeds the weighted marginal cost of capital. D. acceptable as long as the marginal return equals or exceeds the weighted marginal cost of capital.