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When Evaluating a Project,a Firm's Managers Should Select Projects Whose

Question 20

Multiple Choice

When evaluating a project,a firm's managers should select projects whose cash flows


A) exceed some target cash flow level set by management.
B) result in a return that exceeds the cost of funds to finance the project.
C) have the lowest NPVs after discounting cash flows by the project's capital cost.
D) are subject to less risk than competing projects.
E) produce higher returns than the firm's average cost of capital.

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