If a company is faced with limited capital funds for investment (i.e., the company faces capital rationing), the best general method to employ to assess individual project profitability is:
A) Cash-flow bailout.
B) Net present value (NPV).
C) Payback.
D) Discounted payback.
E) Profitability index (PI).

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The Answer of If a company is faced with limited capital funds for investment (i.e., the company faces capital rationing), the best general method to employ to assess individual project profitability is:
A) Cash-flow bailout.
B) Net present value (NPV).
C) Payback.
D) Discounted payback.
E) Profitability index (PI).

If a Company Is Faced with Limited Capital Funds for Investment