In Capital Rationing, an Initial Screening of Alternative Proposals Is

question 88

Multiple Choice

In capital rationing, an initial screening of alternative proposals is usually performed by establishing minimum standards. Which of the following evaluation method(s) are often 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:

Causality

The relationship between cause and effect, often established through correlation and experimentation.

Outcome Variable

The variable in a study or experiment that is measured to assess the effect of the treatment or intervention.

Intention To Treat

A principle in clinical trials that includes all participants in the groups to which they were originally assigned, regardless of whether they completed the treatment or not, to ensure that the trial results are unbiased and reflect the real-world effectiveness of the treatment.

Causal Effects

The impact of one variable on another variable, determining how changes in one lead to changes in the other.