If company has constrained capital

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Which of the below statements is FALSE?

1. If a company has constrained capital, then it can only take on a limited number of projects.

2. The NPV decision criterion is true when all projects are independent and the company has a sufficient source of funds to accept all positive NPV projects.

3. Two projects are mutually exclusive if the accepting of one project has no bearing on the accepting or rejecting of the other project.

4. Projects are mutually exclusive if picking one project eliminates the ability to pick the other project.

Reference no: EM13834945

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