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It is widely recognised that in circumstances of capital rationing, the traditional appraisal techniques will not always offer an optimal recommendation. Identify the potential problem,

It is widely recognised that in circumstances of capital rationing, the traditional appraisal techniques will not always offer an optimal recommendation. Identify the potential problem, describe the Profitability Index, and suggest how it might offer a solution. Include a description of the Weighted Profitability Index.

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