An Approach to Capital Rationing That Involves Graphing Project Returns

question 59

Multiple Choice

An approach to capital rationing that involves graphing project returns in descending order against the total dollar investment to determine the group of acceptable projects is called the

• A) net present value approach.
• B) the internal rate of return approach.
• C) the payback approach.
• D) the profitability index approach.

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Definitions:

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