In capital budgeting,the appropriate decision rule for an average-risk project is to accept if the ________ is greater than the WACC.
A)NPV
B)IRR
C)cost of equity
D)cost of debt

Question

Quizplus · Accepted Answer

The appropriate decision rule in capital budgeting for an average-risk project is to accept if the Internal Rate of Return (IRR) is greater than the Weighted Average Cost of Capital (WACC). This indicates that the project's return exceeds its cost of capital, making it financially viable.

In Capital Budgeting,the Appropriate Decision Rule for an Average-Risk Project