Multiple Choice
Which of the following is TRUE regarding capital rationing decisions for capital assets?
A) Companies should always choose the investment with the highest accounting rate of return.
B) Companies should consider several different methods of evaluation before choosing an investment.
C) Companies should always choose the investment with the highest net present value.
D) Companies should always choose the investment with the shortest payback period.
Correct Answer:
Verified
Correct Answer:
Verified
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