A firm’s optimal budget can be found by moving along its investment opportunity schedule until:
A. it exhausts its capital budget
B. average project return is equal to average cost of capital
C. the next project’s return is less than the marginal cost of capital作者: zephyranalyst 时间: 2013-4-17 17:45
But why would you want your next project’s return to be below the MCC? Wouldn’t you want it to be above?
By the way, C is the correct answer.
