A fiRm That Faces Capital Rationing Must Select a Subset

question 16

Multiple Choice

A firm that faces capital rationing must select a subset of capital projects based on some ranking criterion. The capital budgeting technique best suited for this is the __________.

• A) NPV
• B) IRR
• C) PI
• D) AAR
• E) payback

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Definitions:

Computer Fraud

The illegal act of using a computer to alter or fake electronic data for personal gain or to deceive others.

Access Device Fraud

Illegal use or possession of devices like credit cards or PINs to fraudulently obtain money or goods.

Wiretap Act

U.S. legislation that prohibits the unauthorized interception or recording of wire, oral, and electronic communications.

Hacking

The unauthorized access to or control over computer network security systems for some illicit purpose.