A firm should continue to invest in capital budgeting projects until its marginal cost of capital is:?
A. equal to the net present value (NPV) of the last project purchased.?
B. ?equal to the internal rate of return (IRR) of the first project purchased.
C. ?equal to the marginal return generated by the last project purchased.
D. ?equal to the cash generated by the last project purchased.
E. ?equal to the weighted average cost of all the projects purchased.
Answer: C
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a. attitude b. belief c. value d. idea
West Corporation's Year 1 ending inventory was overstated by $20,000; however, ending inventory for Year 2 was correct. Which of the following statements is correct?
A. Retained earnings at the end of Year 2 is overstated. B. Cost of goods sold for Year 1 is overstated. C. Cost of goods sold for Year 2 is overstated. D. Net income for Year 1 is understated.
The U.S. Constitution provides that the judicial power (the court system) is:
a. determined by the Congress establishing such courts as it deems necessary b. determined by the President with the advice and consent of the Senate c. in one Supreme Court and in lower courts as the Supreme Court may establish d. in one Supreme Court and in lower courts as Congress may establish e. none of the other choices are correct
The sales level that results in a project's net present value exactly equaling zero is called the ________ break-even.
A) operational B) leveraged C) accounting D) cash E) financial