Question: LO3 10-27. (Capital rationing) Kurta Company Ltd. has a budget of $10 million for new projects. The projects are independent and have the following costs

LO3 10-27. (Capital rationing) Kurta Company Ltd. has a budget of

LO3 10-27. (Capital rationing) Kurta Company Ltd. has a budget of $10 million for new projects. The projects are independent and have the following costs and profitabi indexes associated with them: COST 4 million 3 million 5 million 2 million 6 million PROFITABILITY INDEX 1.20 1.80 1.50 2.20 1.50 PROJECT a. Make your selection under strict capital rationing b. Do you see any problems with your decision? Explain. 10-28. (Mutually exclusive projects Nanotnu

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