Under which of the following conditions will capital rationing occur?

A. When the firm has more acceptable positive NPV projects than funds available to finance them.

B. When the stock market is booming and the firm can earn a higher return from equities than from real assets.

C. When a firm is forced to calculate the payback period rather than NPV because acquiring additional data for NPV analysis is too costly.

D. When the firm must choose among projects that are not mutually exclusive.

E. When a project has a positive NPV, but it is not chosen because its payback period exceeds