Describe how the profitability index approach may be used by a firm faced with a capital rationing

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Describe how the profitability index approach may be used by a firm faced with a capital rationing investment funds constraint.

Capital Rationing
Capital rationing is the act of placing restrictions on the amount of new investments or projects undertaken by a company. Capital rationing is the decision process used to select capital projects when there is a limited amount of funding available....
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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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