Multiple Choice
The Delta Mare Co. has received requests from each of the departments within the company for capital investment funds for next year. The management of Delta Mare decides to allocate the available funds based on the net present value (NPV) of each proposal starting with the highest NPV first. Management is following a practice known as _____ rationing.
A) net present value
B) rate of return
C) capital improvement
D) soft
E) hard
Correct Answer:
Verified
Correct Answer:
Verified
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