American_Bankers_Association
CTFA · Question #296
If capital is to be rationed for only the current period, a firm should probably first consider selecting projects by descending order of .
The correct answer is D. Profitability index. See the full explanation below for the reasoning.
Investment Management
Question
If capital is to be rationed for only the current period, a firm should probably first consider selecting projects by descending order of .
Options
- ANet present value
- BPayback period
- CInternal rate of return
- DProfitability index
How the community answered
(22 responses)- A9% (2)
- B5% (1)
- C9% (2)
- D77% (17)
Topics
#capital rationing#profitability index#project ranking#resource constraints
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