1. What is opportunity cost and why is it an important concept in the capital budgeting process? The opportunity cost concept applies to almost every financial decision we make as individuals. Can you give an example from your own experience? 2. What is capital rationing from the perspective of capital budgeting? 3. Give an example of a strength and a weakness of the accounting rate of return approach.

Aprofessional does specialized work that's primarily: degree based. medical or legal. well paying. intellectual and creative

Post test question number 9 for entering the job market

It is estimated that over 100,000 students will apply to the top 30 m.b.a. programs in the united states this year. a. using the concept of net present value and opportunity cost, when is it rational for an individual to pursue an m.b.a. degree. b. what would you expect to happen to the number of applicants if the starting salaries of managers with m.b.a. degrees remained constant but salaries of managers without such degrees decreased by 20 percent