Which of the Following Best Illustrates the Problem Imposed by Capital

question 14

Multiple Choice

Which of the following best illustrates the problem imposed by capital rationing?

• A) Accepting projects with the highest NPVs first
• B) Accepting projects with the highest IRRs first
• C) Bypassing projects that have positive NPVs
• D)Bypassing projects that have positive IRRs

---

Definitions:

Femoral Artery

A major blood vessel in the thigh responsible for delivering blood to the lower leg.

Aortic Arch

The curved portion of the aorta, the largest artery in the body, from which major arteries to the head and arms branch off.

External Iliac Artery

A major artery which arises from the common iliac artery to supply blood to the lower limb.

Iliolumbar Artery

An artery that supplies blood to the ilium and lumbar regions of the spine.