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Which of the following is NOT true regarding capital rationing? From a financial theory perspective, for profit firms there is no basis for it Safe

Which of the following is NOT true regarding capital rationing?

  1. From a financial theory perspective, for profit firms there is no basis for it
  2. Safe projects are always chosen over risky projects
  3. It refers to having limited capital for projects
  4. The profitability index is a useful tool.

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