Use the Table for the Question(s)below

question 47

Multiple Choice

Use the table for the question(s) below.
Consider the following list of projects:
-Assuming that your capital is constrained,so that you only have $600,000 available to invest in projects,which projects should you invest in and in what order?

• A)CBFH
• B)CBGF
• C)BCFG
• D)CBFG

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Definitions:

Company Tax Rate

The rate at which a company’s taxable income is taxed by the government, which varies by country and sometimes also by the type and size of the company.

Inventories

Goods owned with the intention to sell them through standard business activities, in the stage of being made for sale, or as parts or materials meant for consumption in production activities or while offering services.

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements to combine the financial information of a parent company with its subsidiaries.

Subsidiary Entity

An entity that is controlled by another entity, the control often being evidenced through ownership of more than half of the voting rights or through other means of control.