What Might Cause a Firm to Face Capital Rationing

question 75

Multiple Choice

What might cause a firm to face capital rationing?

• A) If a firm has more than one project with a positive NPV.
• B) If a firm rejects some capital investments that are expected to generate positive NPV's.
• C) If investors require returns for their capital that are too high.
• D) If a firm has several projects that are expected to generate negative IRR's.

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Definitions:

Control Containing

Describes an interface element that holds or encompasses other controls or elements for organized interaction.

Report Layout View

A viewing mode in database applications like Microsoft Access that allows users to see how a report will look when printed while still being able to modify its design.

Value

Represents the significance, worth, or usefulness of something, often measured in terms of monetary, functional, or emotional importance.

Conditional Formatting

A feature in data visualization tools that changes the appearance of cells or text based on specific conditions or criteria, such as highlighting outliers.