Capital budgeting proposals should be evaluated as if the project were financed:
A)Entirely by debt
B)Entirely by equity
C)Half by debt and half by equity
D)With the highest cost source of funds, to be safe

Question

Quizplus · Accepted Answer

Capital budgeting proposals should be evaluated as if the project were financed entirely by equity to focus on the project's intrinsic value and cash flows, independent of financing structure.

Capital Budgeting Proposals Should Be Evaluated as If the Project