capital project question
ok, i'm not certain, but here's my 2 pence worth to help get some discussion going:
I assume the answer is c - there is no point investing in a project if you would be better off doing nothing instead!
not a or d, since neither considers the level of risk, and not b, since the co may be paying a lower rate of interest on the debt than it can receive on the project (after factoring in risk)
Last edited by a moderator: Jan 30, 2012