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Which of the following is true regarding capital rationingdecisions? A. Companies should always choose the investment with the shortest payback. B. Companies should always choose

  1. Which of the following is true regarding capital rationingdecisions?

A.

Companies should always choose the investment with the shortest payback.

B.

Companies should always choose the investment with the highest ARR.

C.

Companies should always choose the investment with the highest NPV.

D.

None of the above.

2. Which of the following methods does not consider theinvestment's profitability?

A.

IRR

B.

NPV

C.

ARR

D.

Payback

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