A company with a cost of capital of 10 per cent has non - postponable investment opportunities with the estimated cash flows shown below. None of this projects can be undertaken more than once. Decide which projects should be accepted in the following circumstances: the company is not in a capital rationing situation the company is in a capital rationing position, the projects are divisible and only dollar 4,500,000 is available for investment in year 0. the company is in a capital rationing position, the projects are not divisible and only dollar 4,500,000 is available for investment in year 0. The payback period is serious shortcomings as a method of investment appraisal and yet is commonly used. Explain why this might be