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After reviewing its prospects for the coming year, a company determines that it has no potential projects for the upcoming year that would exceed its

After reviewing its prospects for the coming year, a company determines that it has no potential projects for the upcoming year that would exceed its hurdle rate. What should the company do with its profits from the current year?

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Liquidate the company and distribute all of the profits and assets to its investors.

Distribute the majority of the profits to its investors as a dividend.

Retain the profits as savings for profitable projects in upcoming years.

Invest the profits in the projects anyway and hope that these new product lines exceed expectations.

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