Prairie Computers Limited (PCL) has three projects it could implement with the following cost and NPV profiles.
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However, PCL has only $1 million available to spend on capital projects. Define capital rationing and explain how it fits into this situation.
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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A firm experiences capital rationing when it generates more capital ...View the full answer
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Related Book For 
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
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