Which of the following best illustrates the problem imposed by capital rationing?
A) bypassing projects that have positive NPVs.
B) accepting projects with the highest NPVs first.
C) accepting projects with the highest IRRs first.
D) bypassing projects that have positive IRRs.
Answer: A) bypassing projects that have positive NPVs.
Business
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The income paid to a market maker is referred to as the spread
Indicate whether the statement is true or false.
Business
With a cost-reimbursement type of contract, the greatest risk is assumed by:
A) the purchasing company. B) the vendor. C) both the purchasing company and the vendor. D) neither the purchasing company nor the vendor.
Business