An IRR approach to capital rationing involves graphically plotting project IRRs in descending order against total dollar investment on an ________ graph.
A) ANPV
B) NPV
C) RADR
D) IOS

Question

Quizplus · Accepted Answer

The correct answer is D) IOS, which stands for Investment Opportunity Schedule. This approach involves graphically plotting project Internal Rates of Return (IRRs) in descending order against the total dollar investment to help in capital rationing decisions.

An IRR Approach to Capital Rationing Involves Graphically Plotting Project