The best criterion for success in a capital budgeting decision would be to:

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The best criterion for success in a capital budgeting decision would be to choose projects that maximize the difference between cash inflows and cost. This is known as net present value (NPV), which reflects the profitability of an investment. If the NPV is positive, it means that the project is expected to generate a return that exceeds the required rate of return, indicating that it is worth pursuing. Choosing projects based on this criterion will help maximize the value of the firm for its shareholders. Minimizing the cost alone may not lead to the most profitable projects, and financing all projects with debt could lead to excessive risk and financial distress. Maximizing the number of projects does not necessarily mean that they are all profitable.

The Best Criterion for Success in a Capital Budgeting Decision