1) Remember, the Goal of Management was to Maximize Shareholder Wealth. How can we best use capital budgeting techniques to maximize shareholder value?

a) Take projects with the shortest Payback Period.

b) Take projects with the highest Profitability Index.

c) Take all projects with a positive NPV, even small ones.

d)

Take the average response of all of these, or take the choice indicated by most of the techniques used.

e) Take projects with the highest Internal Rate of Return.