The following capital rationing and capital budgeting statements are either True or False:

If a firm accepts less than all of its prospective projects with positive NPVs when evaluated at their own risk-adjusted costs of capital and those mutually exclusive projects with the highest positive NPVs, then it is said to be employing capital rationing. True or false?

Including real options in a capital budgeting analysis can raise, but not lower, a project's expected NPV as found in a traditional analysis. This is true because, by definition, an option can be exercised or not, and if the option has a negative value, it will be rejected. True or false?