An investment project that provides a higher rate of return than the firm's cost of capital will likely:
A)increase ROI.
B)decrease residual income.
C)increase payback.
D)decrease accounting rate of return.

Question

Quizplus · Accepted Answer

An investment project that provides a higher rate of return than the firm's cost of capital will likely increase ROI (return on investment) because it will generate more income than the cost of the investment.

An Investment Project That Provides a Higher Rate of Return