When seeking a firm that does only what your project does so that you can more accurately assess the appropriate weighted average cost of capital to use in capital budgeting, a firm is mainly seeking a rate of return that:

Multiple Choice

creates a positive net present value for the project.

reflects the size and life of the project.

most closely correlates with the proposed investment's internal rate of return.

is based on the actual source of funds that will be used to fund the project.

best matches the risk level of the proposed investment.