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If a Firm Is Subject to Capital Rationing,when Choosing a Set

Question 92

Multiple Choice

If a firm is subject to capital rationing,when choosing a set of potential investments the firm should rank the projects by:


A) NPV and choose the best ones until funding is exhausted.
B) IRR and choose the best ones until funding is exhausted.
C) PI and choose the best ones until funding is exhausted.
D) ARR and choose the best ones until funding is exhausted.

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