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The Bedrock Corporation, based just outside of Bloomington, Indiana, only uses the payback rule to evaluate capital budgeting projects. Bedrock accepts projects that have a
The Bedrock Corporation, based just outside of Bloomington, Indiana, only uses the payback rule to evaluate capital budgeting projects. Bedrock accepts projects that have a payback period of less than 15 months and rejects projects that have a payback period that is longer than 15 months. Bedrock's opportunity cost of capital is 8% per year.
True or False (Circle one). The Bedrock Corporation is maximizing shareholder value.
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