26) Ifa firm is subject to capital rationing.

i is able to accept all independent projects that

Aswe
p pital Kationing
AACSB Guidelmes: Rellective thinking skills

27) Ifa firm has unlimited funds, it is able to accept all independent projects that provide an
acceptablecr
Answer. R
Tpic: Capital Rationing
Questhon Satus: KevISC
AACSB Guidelmes: Reflective thinking skills

28) If a firm is subject to capital rationing. it has only a fixed number of dollars available for
lor these dollars.
and numerus projecis compete
Capilal epenanures,
Answer:
Topic: Capital Rationing
Question Status: Revised
AACSB Guidelines: Relective thinking skills

29) The ranking approach involves the ranking of capital expenditure projects on the basis of

P
measure such as the rate of return.
Answer: TRUE
Ranking Approaches
pic: Accepl-Rejeet versus
Question status:lines:
AACSB Ciuide KevISeu
Reflective thinking skills

involves the of capital expenditure projects on the basis

30) The accept-reject approach ranking
measure such as the rate ol return.
o1 SOme prcdetcrmincd
Answer ALS
Tpic: Accept-Reject versus Ranking Approaches
Question Status: KeVIsed
AACSB Guidelnes: Reflective thinking skills

flow is in which initial outflow is followed only by a

3))A conventional cash
an
pattern one

series of inflows.
Answer: TRUE
Topic: Conventional versus Nonconventional Cash Fows

Question Status: KevISc

AACSB Guidelines: Retlective thinking skills

32) A nonconventional cash flow pattern is one in which an initial outflow is followed only bya
series o ntlows.

Answer: FALSE
Nonconventional Cash Flows
Topic: Conventional versus
Question Status: ReVIsed
skilds
AACSB Guidelmes: Rellective thinking

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