Question: A firm is trying to decide between two mutually exclusive investments. If no capital rationing has been imposed, which project should be selected? a. select

A firm is trying to decide between two mutually exclusive investments. If no capital rationing has been imposed, which project should be selected?

a. select the project with the lower profitability index

b. select the project with the higher profitability index

c. without capital rationing, both projects can be accepted

d. select the project with the longest life

e. without capital rationing, select by NPV method

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