In Capital Rationing, an Initial Screening of Alternative Proposals Is

question 1

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 normally 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 and net present value methods

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Definitions:

Wilcoxon Rank Sum Test

A nonparametric statistical test that compares two independent samples to assess whether their population mean ranks differ.

Independent Samples

Sets of data collected from distinct, non-overlapping populations.

Parametric Tests

Statistical tests that assume the underlying data distributions fit certain parameters, such as being normally distributed.

Errors In Assumptions

Mistakes or misjudgments made regarding the foundational conditions or premises upon which statistical analyses or models are based.