When a firm faces hard rationing, the firm will fund only those...
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Finance
When a firm faces hard rationing,
the firm will fund only those projects that create value for its shareholders.
the firm will finance only the projects that have the highest profitability index values.
there will be no available funds for capital expenditures.
each division within a firm will be allocated an amount for capital expenditures that will be less than the tota value of its positive net present value projects
all positive net present value projects will be accepted.
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