Which of the statements below is TRUE regarding CAPITAL BUDGETING? OA The NPV tels us the expected dollar impact of a proposed project on the value of the firm. B. The capital budgeting rule is to reject a project if its IRR is less than its NPV. OC. Ceteris paribus, a lower cost of capital would reduce a projects NPV. OD. Capital budgeting deals with how much debt and how much inventory a firm should have.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the statements below is TRUE regarding CAPITAL BUDGETING?
O A. The NPV tells us the expected dollar impact of a proposed project on the value of the firm.
B. The capital budgeting rule is to reject a project if its IRR is less than its NPV.
O C. Ceteris paribus, a lower cost of capital would reduce a projects NPV.
OD. Capital budgeting deals with how much debt and how much inventory a firm should have.
Transcribed Image Text:Which of the statements below is TRUE regarding CAPITAL BUDGETING? O A. The NPV tells us the expected dollar impact of a proposed project on the value of the firm. B. The capital budgeting rule is to reject a project if its IRR is less than its NPV. O C. Ceteris paribus, a lower cost of capital would reduce a projects NPV. OD. Capital budgeting deals with how much debt and how much inventory a firm should have.
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