Firm managers should select projects whose cash flows

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Reference no: EM131916594

1. 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. have the lowest NPVs after discounting cash flows by the? project's capital cost.

C. produce higher returns than the? firm's average cost of capital.

D. result in a return that exceeds the cost of funds to finance the project.

E. are subject to less risk than competing projects.

2. Which of the following is not a constraint against paying a dividend:

a. Negative retained earnings.

b. Restrictive covenants.

c. Lack of cash/cash equivalents.

d. Lack of profits in the current year.

e. All are constraints against paying dividends.

Reference no: EM131916594

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