Each project should be judged against
A) the specific means of financing used to support its implementation.
B) the existing interest rate at that point in time.
C) the cost of new common stock equity.
D) None of these options are true.

Question

Quizplus · Accepted Answer

None of the options are true. The judgment of a project should not be solely based on means of financing or interest rates, but rather on a comprehensive analysis of its potential costs, benefits, risks, and impacts on the organization's goals and strategy. Financing and interest rates are important considerations, but they are not the only factors that determine the feasibility and desirability of a project. The cost of new common stock equity may be relevant to some extent in determining the cost of capital, but it is not a decisive criterion for evaluating a project.

Each Project Should Be Judged Against