In this decision type of decision making, there are more than one proposal to be chosen however the firm has limited funds so that’s why they must ration these project proposals. Usually, they select a group of projects that yield the highest total return given such limited funds.Select one:a.Accept-Rejectb.Capital Rationingc.none of the aboved.Mutually Exclusive

Who imposes the limit on capital funds for soft rationing?Multiple ChoiceInvestorsBanksTop managementCorrectStock market

Given the internal rate of return of Project X and Project Y are 7% and 9% respectively. With a firm’s cost of capital 10%, which of the project(s) can be accepted?Group of answer choicesAccept Project X onlyReject both projectsAccept Project Y onlyAccept both projects

Multiple Choice QuestionThe allocation of funds to R&D projects benefits society when which of the following is true?Multiple choice question.The projects have expected rates of return lower than the interest rate.The projects produce goods at a large scale for a low price.The projects have low enough expected rates of return to justify the use of scarce resources.The projects have high enough expected rates of return to justify the use of scarce resources.

the company is in a capital rationing position, the projects are divisible and only £4,500,000 is available for investment in year 0

Multiple Select QuestionSelect all that applyWhich of the following exemplify how the interest rate does not perfectly ration capital to its most productive uses?Multiple select question.Small entrepreneurs who are able to secure venture capital fundingBorrowers that are able to earn a return on investment greater than the cost of the borrowed fundsLarge corporate borrowers that use their size and prestige to negotiate more favorable terms than smaller firmsLarge oligopolistic borrowers that pass interest costs on to consumers because they can change prices by controlling outputNeed help? Review these concept resources.