Question: QUESTION 1 When comparing two investments like a used squeeze chute and a new squeeze chute, this would be referred to as: Mutually exclusive investment

QUESTION 1

  1. When comparing two investments like a used squeeze chute and a new squeeze chute, this would be referred to as:

    Mutually exclusive investment

    Mutually dependent investment

    Capital rationed investment

    Mutually secured investment

    None of the answers are correct

10 points

QUESTION 2

  1. We always use the real discount rate to calculate the NPV when using nominal cash flows.

    True

    False

10 points

QUESTION 3

  1. External form of capital rationing involves free access to Equity and Debt capital.

    True

    False

10 points

QUESTION 4

  1. External capital rationing means that a farmer chooses to limit the capital invested in his business.

    True

    False

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