When Hard Capital Rationing Exists, Projects May Be Accurately Evaluated

question 38

Multiple Choice

When hard capital rationing exists, projects may be accurately evaluated by use of:

• A)Payback period
• B)Mutually exclusive IRRs
• C)A profitability index
• D)Borrowing, rather than lending, projects

---

Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time, allowing organisms to focus on changes in their environment.

Feature Detection

The process by which the brain identifies specific elements of visuals, such as lines, edges, or movements, to interpret what is seen.

Sensory Overload

A condition where one or more of the body's senses experiences over-stimulation from the environment.

Selective Attention

The focusing of attention on selected aspects of the environment and the blocking out of others.