The Delta Mare Co

question 318

Multiple Choice

The Delta Mare Co. has received requests from each of the departments within the company for capital investment funds for next year. The management of Delta Mare decides to allocate the available funds based on the net present value (NPV) of each proposal starting with the highest NPV first. Management is following a practice known as _____ rationing.

• A) net present value
• B) rate of return
• C) capital improvement
• D) soft
• E) hard

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Definitions:

Career

A series of occupations, jobs, or positions a person holds over their working lifetime, involving progression and growth in a particular field.

Flexibility

The ability of an entity or system to adapt to changes, challenges, or varying conditions without losing functionality or value.

Organization

A structured arrangement of people and resources designed to achieve specific goals and objectives.

Individual

Pertaining to a single person or thing, distinct from a group or collective.