Start learning →

With no capital limit and independent projects, which are accepted?

AOnly the shortest payback project
BOnly the largest project
COnly the highest IRR project
DAll projects with positive NPV
Answer & Solution
Correct answer: D. All projects with positive NPV
Without capital constraints or dependencies, every project with a positive NPV adds value, so all are accepted.
Practise this question with Quill — CA Inter →

Keep practising Capital Budgeting

Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.

Start a Capital Budgeting lesson →
Related questions
Under which cash flow statement section is capex commonly reported?Which spending is capital expenditure as it extends asset life?Which of these spending items is a capital expenditure?Where do capitalised expenditures show up in the financial statements?Which expense is the counterpart of capital expenditure?What is capital expenditure (capex)?Payback also ignores which part of a project's cash flows?Which key weakness does the simple payback period have?