When presented with the choice of multiple profitable projects,which of the following statements is true?

Question

Quizplus · Accepted Answer

The entity should consider the availability and limitation of capital when choosing among multiple profitable projects. In situations where the capital is limited or constrained, undertaking the project with the highest NPV may not be feasible. The entity should prioritize projects based on their ability to generate the highest return on investment while taking into account the capital constraints. Therefore, the project with the highest NPV may not necessarily be the best project to undertake.

When Presented with the Choice of Multiple Profitable Projects,which of the Following