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A small manufacturing firm, which has limited access to capital, has a capital rationing constraint of $150 mil- lion and is faced with the following
A small manufacturing firm, which has limited access to capital, has a capital rationing constraint of $150 mil- lion and is faced with the following investment projects (numbers in millions): Project Initial Investment NPV $25 $30 $10 $25 $40 $10 $15 $20 $10 $10 $60 $20 $25 $35 $20 $10 $20 $10 $15 a. Which of these projects would you accept? Why? b. What is the cost of the capital rationing constraint
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