1. The Balance Sheet

Is a reflection of economic value

Reflects what the business is worth and its resale value

Takes inflation into account

None of the above

2. Beige Inc. has to choose from three projects whose internal rates of return are more than the marginal cost of capital. Beige should choose those projects that _______

a: minimize the marginal cost of capital

b: maximize the excess of internal rate of return over marginal costs

c: maximize the dividend payout

d: maximize the cash flow from the investment in projects

e: minimize the rate of return to the investors