NPV Fails as a Decision Rule When

question 1

Multiple Choice

NPV fails as a decision rule when:

• A) the firm faces capital rationing.
• B) the firm faces mutually exclusive projects.
• C) the firm faces long-lived projects.
• D)positive profitability index

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Definitions:

Surprise

An unexpected or astonishing event, fact, or thing that takes someone unawares.

Ambiguous

Describes statements or terms that are unclear or have multiple interpretations, often leading to confusion or misunderstanding.

Buyer

An individual or entity that purchases goods or services for personal use, resale, or production purposes.

Inspect

To examine something carefully in order to assess its condition or to discover its existence.