Which of the Following Is True Regarding Capital Rationing Decisions

question 70

Multiple Choice

Which of the following is true regarding capital rationing decisions for capital assets?

• A) Companies should always choose the investment with the shortest payback period.
• B) Companies should always choose the investment with the highest NPV.
• C) Companies should always choose the investment with the highest ARR.
• D) Companies may have to choose a subset of available capital investments.

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Definitions:

Team Processes

The methods and dynamics through which a team operates and collaborates to achieve goals.

Collective Efficacy

The group's shared belief in its conjoint capabilities to organize and execute the courses of action required to produce given levels of attainment.

Shared Beliefs

Core values or principles that are commonly held and agreed upon by a group or community.

Collective Efficacy

The shared belief of a group in their combined ability to organize and execute actions required to achieve common objectives.