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5. (Capital rationing) Consider the following capital budgeting projects: PROFITABILITY INDEX PROJECT OUTLAY NPV PV RANK (1 = HIGHEST PD $150 60 $210 105 405
5. (Capital rationing) Consider the following capital budgeting projects: PROFITABILITY INDEX PROJECT OUTLAY NPV PV RANK (1 = HIGHEST PD $150 60 $210 105 405 60 260 9 1.40 1.35 1.30 300 200 105 a. With no limit on capital outlays, which projects should be accepted? What is the t outlay and the total NPV is the total outlay and the total NPV? is the total outlay and the total NPV? b. Assume the capital budget is limited to $450. Which projects should be accepted? Whit c. Assume the capital budget is limited to $400. Which projects should be accepted e accepted? Wh
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