List and Describe the Three Factors That Constrain All Projects

question 48

Essay

List and describe the three factors that constrain all projects. Suppose your college wants to implement new course management software (like Blackboard or Canvas), what would the tradeoffs be between these three factors?

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Definitions:

Capital Intensity Ratio

A firm’s total assets divided by its sales, or the amount of assets needed to generate $1 in sales.

Retention Ratio

The retention ratio, in financial terms, refers to the percentage of a company's net income that is retained and not distributed as dividends to shareholders, indicating how much of its profit a company reinvests.

Dividend Payout Ratio

A financial ratio that measures the percentage of a company's net income that is distributed to shareholders in the form of dividends.

Capital Intensity Ratio

A measure of how much capital is required to produce one unit of output, often used to evaluate the business's capital efficiency.