Use the Table for the Question(s)below

question 45

Multiple Choice

Use the table for the question(s) below.
Consider the following list of projects:
-Assuming that your capital is constrained,which project should you invest in last?

• A)Project A
• B)Project I
• C)Project D
• D)Project C

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Definitions:

Soft Rationing

Internal limitations set by a company on the amount of funds allocated for new investments or projects.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the proportion of fixed versus variable costs a company has.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including rent, salaries, and insurance costs.

Accounting Break-Even

The point where total sales equal total expenses, and the company makes no profit but also incurs no loss.