Steve is fairly cautious when analyzing a new project and thus he projects the most optimistic

The procedure of allocating a fixed amount of funds for capital spending to each business unit is called:    A.  marginal spending. B.  capital preservation. C.  soft rationing. D.  hard rationing. E.  marginal rationing. Refer to section 11.6

16.	PC Enterprises wants to commence a new project but is unable to obtain the financing under any circumstances. This firm is facing:    A.  financial deferral. B.  financial allocation. C.  capital allocation. D.  marginal rationing. E.  hard rationing. Refer to section 11.6

17.

Forecasting risk emphasizes the point that the correctness of any decision to accept or reject a project is highly dependent upon the:    A.  method of analysis used to make the decision. B.  initial cash outflow. C.  ability to recoup any investment in net working capital. D.  accuracy of the projected cash flows. E.  length of the project. Refer to section 11.1

18.

Steve is fairly cautious when analyzing a new project and thus he projects the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. Which type of analysis is Steve using?    A.  simulation testing B.  sensitivity analysis C.  break-even analysis D.  rationing analysis E.  scenario analysis Refer to section 11.2