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anthonyaooo anthonyaooo
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When a firm is facing capital rationing which of the following is TRUE?

▸ Firms can fully rely on either IRR or NPV as a criterion.

▸ The cost of capital is no longer the appropriate opportunity cost.

▸ The investment decision should be based on which combination of projects generates the highest total NPV, regardless of the cost of the investment.

▸ PIs are often useful to conclude on the optimal solution.
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Corporate Finance

Corporate Finance


Edition: 5th
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szsz
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