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:

Refined and Developed

The process of improving and evolving an idea, product, or skill through careful analysis, enhancement, and growth activities, often resulting in higher quality and effectiveness.

Brainstorming Method

A creative idea-generation strategy used by teams to solve problems or generate innovation by encouraging open and uninhibited participation from all members.

Stimulating Creativity

The process or actions taken to inspire inventive thinking, novel ideas, and creative solutions in individuals or groups.

Brainstorming Session

a collaborative meeting aimed at generating ideas or solving problems in a creative and non-judgmental environment.