Capital rationing involves selecting projects subject to a finding limitation. T
ID: 2736589 • Letter: C
Question
Capital rationing involves selecting projects subject to a finding limitation. Therefore it may involve the rejection of projects with __________________ NPVs.
Word bank: Capital, Capital gain, Capital rationing, Cash outflows, Cheapest, Cost of capital, Debt, Equity, Externalities, Financial- leverage, Fluctuating, Higher, Hybrid, Incremental CFs, Independent, Interest expense, Investor's, IRR, Most expensive, Mutually exclusive, Negative, New stock, NPV rule, Open- market, Operating leverage, Opportunity, Overvalued, Positive, Preferred stock, Shareholder's, Sunk, WACC
Explanation / Answer
Answer :Negative NPv's