When a firm faces hard rationing,

Multiple Choice

the firm will finance only the projects that have the highest profitability index values.

there will be no available funds for capital expenditures.

each division within a firm will be allocated an amount for capital expenditures that will be less than the total value of its positive net present value projects.

all positive net present value projects will be accepted.

the firm will fund only those projects that create value for its shareholders.