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:

Hormone-disrupting Chemicals

Substances that interfere with the endocrine system, potentially causing developmental, reproductive, neurological, and immune issues in both humans and wildlife.

Reproductive Process

The biological mechanisms through which organisms produce offspring, encompassing various strategies across species from sexual to asexual reproduction.

Vitamin D

A fat-soluble vitamin essential for bone health and immune function, produced by the human body when exposed to sunlight and also found in certain foods.

Skin Color

A phenotypic trait that is primarily determined by genetic inheritance and exposure to the sun, varying widely among individuals and populations.