1. One of the real-world complexities that managers come across in long-term investment planning is assessing new projects based on capital rationing. Discuss some reasons for capital rationing and explain how financial managers would make decisions if investment projects are subject to capital rationing. 

Answer rating: 100% (QA)

Capital Rationing and LongTerm Investment Planning Complexities Capital rationing is a situation where a company has limited resources available for investment in new projects This limitation can aris... View the full answer