General Studies · Capital Budgeting
A company faces capital rationing when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The cost of capital is zero
- 2Available funds are insufficient to undertake all profitable projects✓
- 3There is unlimited capital available
- 4Projects have negative NPVs
Correct answer
Available funds are insufficient to undertake all profitable projects
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