Barry Phones has five positive net present value opportunities. Unfortunately, the firm has been able to find financing for only two of these projects. Which one of the following terms best describes the firm's situation?

A. Erosion

B. Sunk cost

C. Contingency planning

D. Capital rationing

E. Soft rationing

2. A nine-year project is expected to generate annual revenues of $114,500, variable costs of $73,600, and fixed costs of $14,000. The annual depreciation is $3,500 and the tax rate is

23 percent. What is the annual operating cash flow?

A.

$32,298

B.

$91,665

C.

$21,518

D.

$18,018

E.

$4,065