Q5 A. (20 Marks) 1. Answer the following in few sentences (10 Marks) a. What is Capital rationing and when do companies use Capital Rationing? b. What are the two main types of Capital Rationing? c. What is profitability Index? 2. Use the following table to answer the questions. Figs are in $. (10 Marks) Project C1 C2 C3 A -18 +10 +10 +10 B -50 +25 +25 +25 a) Which project has the higher NPV if the discount rate is 10%? b) Which has the higher profitability Index? c) Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for the investment projects? d) Which project is most attractive to a firm that is limited in the funds it can raise