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2. When there is a constraint on the amount that can be invested in potentially worthwhile projects (i.e., capital rationing) in what sense is the

2. When there is a constraint on the amount that can be invested in potentially worthwhile projects (i.e., capital rationing) in what sense is the benefit-cost ratio the best figure of merit in making a decision regarding which of several independent projects should be selected ( assume fractional investments are allowed)? If fractional investments are not allowed, why is the net present value method the best method to use in the selection of independent projects under conditions of capital rationing?

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