NPV fails as a decision rule when the firm encounters:
A) capital rationing.
B) mutually exclusive projects.
C) long-lived projects.
D)independent projects.

Name: NPV fails as a decision rule when the firm encounters: A) capital rationing. B) mutually exclusive projects. C) long-lived projects. D)independent projects.
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Question

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NPV fails as a decision rule under capital rationing because it assumes that capital is unlimited and does not account for the constraints on available funds.

NPV Fails as a Decision Rule When the Firm Encounters