Screening Capital Projects
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In capital rationing, an initial screening of alternative proposals is usually performed by establishing minimum standards. Which of the following evaluations method (s) are normally used?
a. Cash payback method and average rate of return method
b. Average rate of return method and net present value method
c. Net present value method and cash payback method
d. Internal rate of return and net present value methods.
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The solution provides the methods used for screening capital projects.
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