In Simple Cases When Hard Capital Rationing Exists,projects May Be

question 87

Multiple Choice

In simple cases when hard capital rationing exists,projects may be evaluated by :

• A) the payback period.
• B) mutually exclusive IRRs.
• C) a profitability index.
• D) the modified internal rate of return.

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Definitions:

Long-term Results

Outcomes or effects that manifest or become evident over an extended period.

Utilitarian Theory

An ethical theory that suggests the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Predict Outcomes

The process of forecasting the probable results or consequences of an action or event based on current data or trends.

Self-interest

Acting based on one’s own benefit or advantage, often disregarding others.