The cost utilized in making capital budgeting decisions given an investment opportunity schedule is
A. the weighted average cost of all needed financing for funding.
B. the simple average of the cost of the last incremental amount of financing.
C. the weighted average cost of the last incremental amount of financing.
D. the weighted average cost of all bonds issued that are related to the capital budget.
Answer:C
The cost utilized in making capital budgeting decisions given an investment opportunity schedule is
A. the weighted average cost of all needed financing for funding. B. the simple average of the cost of the last incremental amount of financing. C. the weighted average cost of the last incremental amount of financing. D. the weighted average cost of all bonds issued that are related to the capital budget.