In capital rationing,an initial screening of alternative proposals is usually performed by establishing minimum standards.Which of the following evaluation methods are often used?

Question

Quizplus · Accepted Answer

The cash payback method and average rate of return method are often used for initial screening in capital rationing because they are simpler and quicker to calculate compared to more complex methods like net present value or internal rate of return, making them suitable for initial evaluations.

In Capital Rationing,an Initial Screening of Alternative Proposals Is Usually