Question: Prairie Computers Limited (PCL) has three projects it could implement with the following cost and NPV profiles. However, PCL has only $1 million available to

Prairie Computers Limited (PCL) has three projects it could implement with the following cost and NPV profiles.
Prairie Computers Limited (PCL) has three projects it could implement

However, PCL has only $1 million available to spend on capital projects. Define capital rationing and explain how it fits into this situation.

Cost (S) NPV (S) Project A 400,000 75,000 Project B 450,000 125,000 Project C 625,000 195,000

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