Capital rationing: a. determines which projects pass the NPV and/or IRR tests. b. generally gives terrible results

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Capital rationing:

a. determines which projects pass the NPV and/or IRR tests.

b. generally gives terrible results when done intuitively.

c. implies that all projects with positive NPVs should be undertaken.

d. is a technique for allocating scarce financial resources among viable projects.

Posted Date: Jul 11, 2024 12:22 AM

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Capital rationing: a. determines which projects pass the NPV and/or IRR tests. b. generally gives terrible results

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