The objective of capital rationing is to select the group of projects that provides the highest overall net present value and does not require more euros than are budgeted.

Question

Quizplus · Accepted Answer

Capital rationing aims to prioritize and select a group of projects that will yield the highest net present value within the given budget constraint. It ensures that the limited funds are allocated to the most profitable projects, maximizing the overall return on investment.

The Objective of Capital Rationing Is to Select the Group