Evaluate the factors that influence capital rationing decisions.
Understand the Problem
The question is asking to evaluate the factors that influence capital rationing decisions in managerial finance. It presents multiple-choice options related to aspects that may affect these decisions.
Answer
B. Project size, risk, and return expectations.
The final answer is B. Project size, risk, and return expectations.
Answer for screen readers
The final answer is B. Project size, risk, and return expectations.
More Information
Capital rationing involves evaluating factors like profitability, risk, and resource availability. These considerations help select the most suitable projects under financial constraints.
Tips
Avoid focusing on single aspects like expected return or NPV preference since capital rationing considers multiple criteria.
Sources
- Factors To Consider In Capital Rationing Decisions - FasterCapital - fastercapital.com
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