Which of the Following Is NOT True When a Firm

question 59

Multiple Choice

Which of the following is NOT true when a firm faces capital budget constraints?

• A)Capital rationing prevails.
• B)Independent projects that generate positive NPVs may not be accepted.
• C)Investment capital must be rationed among available investment projects.
• D)All the projects listed on its investment opportunity schedule until the IRR equals its WACC will be accepted.

---

Definitions:

Placebos

Substances that have no therapeutic effect, used as a control in testing new drugs, or sometimes for therapeutic effect in patients through a placebo effect.

Severe Symptoms

Intense or serious signs of illness or condition that significantly impair normal function or well-being.

Lithium

A chemical element used in the treatment of mood disorders, including bipolar disorder.

Bipolar Disorder

A psychological disorder identified by significant fluctuations in mood, ranging from manic or hypomanic episodes to depressive states.