Any capital budgeting investment rule should depend solely on forecasted cash flows and the opportunity cost of capital. The rule itself should not be affected by managers' tastes, the choice of accounting method, or the profitability of other independent projects.

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A capital budgeting investment rule should be based solely on objective factors such as forecasted cash flows and the opportunity cost of capital. It should not be influenced by subjective factors such as managers' tastes or accounting methods, or by the profitability of unrelated projects. This ensures that investment decisions are made based on their potential to create value for the company and maximize shareholder wealth.

Any Capital Budgeting Investment Rule Should Depend Solely on Forecasted