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Which of the Following Is Not a Suitable Rule for Deciding

Question 17

Multiple Choice

Which of the following is not a suitable rule for deciding which investment projects to undertake? Invest if the


A) marginal revenue product of capital is greater than the marginal cost of capital (both expressed as an interest rate) .
B) internal rate of return is above the interest rate.
C) money generated by the investment exceeds the costs of the investment.
D) net present value is positive.

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