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    Corporate Finance Study Set 5
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    Exam 8: Net Present Value and Other Investment Criteria
  5. Question
    NPV Fails as a Decision Rule When
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NPV Fails as a Decision Rule When

Question 1

Question 1

Multiple Choice

NPV fails as a decision rule when:


A) the firm faces capital rationing.
B) the firm faces mutually exclusive projects.
C) the firm faces long-lived projects.
D) positive profitability index

Correct Answer:

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