The ordering of capital expenditure projects on the basis of some predetermined measure such as the rate of return is called

Question

Quizplus · Accepted Answer

The ordering of capital expenditure projects on the basis of some predetermined measure such as the rate of return is typically referred to as the ranking approach. This approach involves listing potential investments in order of their expected rate of return, and then selecting the ones that rank highest until the available funds for investment are exhausted. This method helps companies prioritize investments and allocate resources to the most profitable projects. The other answer choices do not accurately describe this process.

The Ordering of Capital Expenditure Projects on the Basis of Some