Ask Question
BusinessBusiness
16 November, 19:21

Which one of the following best illustrates the problem imposed by capital rationing? Group of answer choicesAccepting projects with the highest NPVs firstBypassing projects that have zero IRRsBypassing projects that have positive NPVsAccepting projects with the highest IRRs first

+4
Answers (1)
  1. 16 November, 19:28
    0
    Bypassing projects that have positive NPVs

    Explanation:

    An organization cannot undertake every investment that comes its way due to financial constraints. Capital rationing is the process by which the organization accepts those investments that give maximum benefits at minimum cost and rejects the ones that are not cost effective.

    One of the disadvantages of capital rationing is that it bypasses investments with positive NPV (net present value) and accepts investments with highest NPV.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which one of the following best illustrates the problem imposed by capital rationing? Group of answer choicesAccepting projects with the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which statements describe DTP?
Answers (1)
In 1914 what act imposed a tax on opium and cocaine
Answers (1)
Sheryl's Shipping had sales last year of $10,000. The cost of goods sold was $6,500, general and administrative expenses were $1,000, interest expenses were $500, and depreciation was $1,000. The firm's tax rate is 35%. a.
Answers (1)
Which of the following outfits would best fit an office job? a. Neon green blouse, blue jeans, flip flops b. Brown polo shirt, khaki pants, dress shoes c. Pink polka dotted t-shirt, khaki pants, dress shoes d.
Answers (1)
Seth is thinking of a number between 20 and 30. the number is prime and not more than 2 away from a perfect square. what is the number
Answers (1)
New Questions in Business
The Don't Tread on Me Tire Company had retained earnings at December 31, 2015 of $202,000. During 2016, the company had revenues of $402,000 and expenses of $351,000, and the company declared and paid dividends of $11,200.
Answers (1)
Which of the following refers to the acquisition of goods in one country and the selling of them to buyers in another country? a. Cartel b. Joint venture c. Trading company d. Outsourcing
Answers (1)
1. Of the 4 strategic approaches to international markets, which one (s) might be the best for a manufacturing company? a financial services company? or a company like Coke or Pepsi? Thoughts? 2.
Answers (1)
Masks Inc. is a cosmetics company that makes beauty products. It uses whale oil from dead whales only and does not kill whales to obtain blubber. A newspaper publishes a report stating that Masks Inc.
Answers (1)
Transfer payments are not included in gdp calculation because these are
Answers (1)
Home » Business » Which one of the following best illustrates the problem imposed by capital rationing? Group of answer choicesAccepting projects with the highest NPVs firstBypassing projects that have zero IRRsBypassing projects that have positive NPVsAccepting
Sign Up Forgot Password?