A firm should continue to invest in capital budgeting projects to the point where the marginal cost of capital (MCC) equals the marginal return (internal rate of return, IRR) generated by the last project that is purchased.
Answer the following statement true (T) or false (F)
True
A firm should continue to invest in capital budgeting projects until its marginal cost of capital, MCC, equals the marginal return generated by the last project purchased, which is measured by the project's internal rate of return (IRR). See 11-3: Combining the MCC and Investment Opportunity Schedules (IOS)
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