Business, 18.08.2020 18:01 ToriChristine

Brubaker & Goss has received requests for capital investment funds for next year from each of its five divisions. All requests represent positive net present value projects. All projects are independent. Senior management has decided to allocate the available funds based on the profitability index of each project since the company has insufficient funds to fulfill all of the requests. Management is following a practice known as: a. scenario analysis.
b. sensitivity analysis.
c. leveraging.
d. hard rationing.
e. soft rationing.

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