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:

Trait Theorists

Psychologists who aim to understand personality by identifying and measuring the traits that underlie individual behaviors and attitudes.

Cattell

An influential psychologist known for his research on personality, intelligence testing, and the application of factor analysis in psychology.

Allport

Refers to Gordon Allport, an American psychologist known for his theory of personality that emphasized the uniqueness of the individual and the concept of personal dispositions.

Collectivistic

A cultural orientation that emphasizes the needs, goals, and views of the group over those of the individual.