The investment opportunity schedule combined with the weighted marginal cost of capital indicates
A. those projects that a firm should select.
B. those projects that will result in the highest cash flows.
C. which projects are acceptable given the firm’s cost of capital.
D. which combination of projects will fit within the firm’s capital budget.
Answer:C
The investment opportunity schedule combined with the weighted marginal cost of capital indicates
A. those projects that a firm should select. B. those projects that will result in the highest cash flows. C. which projects are acceptable given the firm’s cost of capital. D. which combination of projects will fit within the firm’s capital budget.