2D4C IN EVALUATING INDEPENDENT CAPITAL INVESTMENT PROJECTS, THE BEST...

349.

CSO: 2D4a

LOS: 2D4c

In evaluating independent capital investment projects, the best reason for a firm to accept

such projects is a(n)

a.

accounting rate of return greater than zero.

b.

initial investment greater than the present value of cash inflows.

c.

profitability index greater that one.

d.

internal rate of return greater than the accounting rate of return.