In cases where capital must be rationed, a firm should rank projects according to their

Name: In cases where capital must be rationed, a firm should rank projects according to their
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When capital must be rationed, projects should be ranked according to their profitability indexes. This is because the profitability index provides a measure of the value created per unit of investment, making it a useful tool for comparing projects when capital is limited.

In Cases Where Capital Must Be Rationed, a Firm Should