In Capital Rationing, an Initial Screening of Alternative Proposals Is

question 31

Multiple Choice

In capital rationing, an initial screening of alternative proposals is usually performed by establishing minimum standards. Which of the following evaluation methods are often used?

• A) cash payback method and average rate of return method
• B) average rate of return method and net present value method
• C) net present value method and cash payback method
• D) internal rate of return method and net present value method

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