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moni21
Jun 16, 2009, 11:58 AM
If a corporation has projects that will earn more than the cost of capital, should it ration capital?
rehmanvohra
Jun 21, 2009, 04:54 AM
Capital rationing considers whether or not the different projects divisible.

Calculate the profitability index by comparing the NPV with the initial investment in each project and then choose the project(s) with the best ranking