Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) The market is efficient, even in case of capital rationing.
B) If a company faces capital rationing, they may have to turn down positive net present value projects.
C) Under capital rationing, the decision on projects is based on the combination of projects that gives the highest net present value while satisfying the capital budget constraint.
D) Cost of Capital is no longer the appropriate opportunity cost under capital rationing. Cash flows generated by a project can be reinvested at a rate higher than assumed by the cost of capital because the company is leaving some positive net present value projects on the table due to lack of financing.