Under what condition would you NOT accept a project that has a ...

[sarasara]

Under what condition would you NOT accept a project that has a positive net present value?
 
  A) If a project has more than one sign reversal.
  B) If the firm is limited in the capital it has available (capital rationing).
  C) If the project has a profitability index less than zero.
  D) If two or more projects are mutually inclusive.

Question 2

Exchange rate risk exists in international trade contracts denominated in a foreign currency, but not
  in foreign portfolio investments, because the returns on investment securities are adjusted
  automatically for differences in exchange rates.
 
  Indicate whether the statement is true or false

[abro1885]

Answer to Question 1

B

Answer to Question 2

FALSE