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( Capital rationing ) The Cowboy Hat Company of Stillwater, Oklahoma, is considering seven capital investment proposals for which the total funds available are limited
Capital rationing The Cowboy Hat Company of Stillwater, Oklahoma, is considering seven capital investment proposals for which the total funds available are limited to a maximum of $ million. The projects are independent and have the costs and profitability indexes associated with them shown in the popup window:
a Under strict capital rationing, which projects should be selected?
b What problems are there with capital rationing?
a Under strict capital rationing, which projects should be selected? Select the best choice below.
A Projects and
B Projects D F and G
C Projects C D and E
D Projects and
E Projects C and D
Click on the following icon in order to copy its contents into a spreadsheet.
tablePROJECTCOST,PROFITABILITY INDEXA$BCDEFG
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