Bryan Must Select a New Supplier for Lighting Fixtures for His

question 21

Multiple Choice

Bryan must select a new supplier for lighting fixtures for his company's mobile homes. He has decided quality is more important than price but price is more important than lead times. Bryan will use these priorities to ________.

• A) analyze alternatives
• B) set his decision criteria
• C) allocate weights to the criteria
• D) develop alternatives

---

Definitions:

CCA Recapture

In Canadian taxation, the portion of the Capital Cost Allowance that is added back to income when an asset is disposed of for more than its undepreciated capital cost.

Risk-adjusted Cost of Capital

The rate of return that must be achieved in order to compensate for the risk of an investment, adjusting the cost of capital according to the risk involved.

IRR Estimate

An estimation of the Internal Rate of Return, which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Asset's Total Assets

The summation of everything of value owned by a person, company, or organization, including both current and non-current assets.