Capital investment proposals should be ranked in decreasing order of:

Question

Quizplus · Accepted Answer

Ranking capital investment proposals in decreasing order of rate of return allows the company to prioritize investments that will generate the highest returns relative to the amount of capital invested. This ensures that the company maximizes its profitability and makes the most efficient use of its resources. The other options, such as dollar amount required, salvage value, and residual value expected, may be relevant factors to consider but are secondary to the primary goal of maximizing returns.

Capital Investment Proposals Should Be Ranked in Decreasing Order Of