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34kurt
4 years ago
7

Kyle Electric has three positive net present value opportunities. Unfortunately, the firm has not been able to find financing fo

r any of these projects. Which one of the following terms best describes the firm's situation?
A. Sensitivity analysis.
B. Capital rationing.
C. Soft rationing.
D. Contingency planning.
E. Sunk cost
Business
1 answer:
andreyandreev [35.5K]4 years ago
5 0

Answer:

B. Capital rationing.  

Explanation:

If Kyle Electric has three positive net present value opportunities and unfortunately, the firm has not been able to find financing for any of these projects. What most closely describes the firm's situation is capital rationing

Capital rationing could be defined as a management approach to allocating available funds across multiple investment opportunities, which the company has accepted because those projects give a positive net present value. This allocation is done because the company does not have money for all the projects

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Answer:

 c. $360 increase in excess reserves and a $40 increase in required reserves

Explanation:

Required reserves is the amount of reserves that is required by the Central bank that banks should keep.

Required reserve = reserve ratio × deposit

= 0.1 × $400 = $40

Excess reserve is the amount of reserves kept in excess of the required reserves.

Excess reserve = Deposit - Required reserve = $400 - $40 = $360

I hope my answer helps you

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4 years ago
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Answer:

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Answer:

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