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  • Discuss The Nature

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    AURANGZEB JAMAL
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    Capital rationing occurs when a company has limited funds to invest in all potential projects, so it must choose which projects to invest in. This can be overcome by prioritizing projects based on their net present value and internal rate of return to determine which will provide the highest returns. Investing in the projects with the strongest financial metrics will help the company make optimal investment decisions given its capital constraints.

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    EXPLAINS F9 QUESTON ABOUT NPV IN DETAIL

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    Discuss the Nature

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    Capital rationing occurs when a company has limited funds to invest in all potential projects, so it must choose which projects to invest in. This can be overcome by prioritizing projects based on their net present value and internal rate of return to determine which will provide the highest returns. Investing in the projects with the strongest financial metrics will help the company make optimal investment decisions given its capital constraints.

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    22 views1 page

    Discuss The Nature

    Uploaded by

    AURANGZEB JAMAL
    Capital rationing occurs when a company has limited funds to invest in all potential projects, so it must choose which projects to invest in. This can be overcome by prioritizing projects based on their net present value and internal rate of return to determine which will provide the highest returns. Investing in the projects with the strongest financial metrics will help the company make optimal investment decisions given its capital constraints.

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    © All Rights Reserved
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    of 1

    DISCUSS THE NATURE & CAUSES OF CAPITAL

    RATIONING IN THE CONTEXT OF INVESTMENT


    APPRAISAL, & EXPLAIN HOW THIS PROBLEM CAN BE
    OVERCOME TO REACH OPTIMAL INVESTMENT
    DECISION FOR A COMPANY?

    WHERE CO CANT INVEST IN ALL PROJECTS

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