Browse Over 3 Million Questions

Let Our Professionals Assist You With Research and Writing. 

student_PNG181-2.png

Describe how capital-budgeting decision criteria would be different in a capital-rationing situation than in a situation in which capital rationing was not necessary, and explain the reasons for the difference in criteria.

The availability of funds effects the capital budgeting decisions.  The amount of funds available for capital expenditures will be either limited or unlimited.  Funds would be considered unlimited when a firm is willing to acquire, through borrowing or equity, any amount of capital as long as the return on the investment is higher than the cost of the funds.  When the funds that a firm will make available for capital investment are limited, and the firm has more opportunities for profitable investments than the limited funds can cover, the condition is described as capital rationing.
Your assignment is to focus on the following:

Describe how capital-budgeting decision criteria would be different in a capital-rationing situation than in a situation in which capital rationing was not necessary, and explain the reasons for the difference in criteria.  
Describe the discounted-cash flow technique or techniques you would recommend in a capital-rationing situation and explain your reasons for your recommendation.

Write your response as a one-page memo.

Order a similar paper and get 15% discount on your first order with us (Coupon Code: SAVE15)

Dr. Thea Watson
98% Success Rate
Read More
“Hello, I deliver nursing papers on time following instructions from the client. My primary goal is customer satisfaction. Welcome for plagiarism free papers”
Ivan L. Myers
98% Success Rate
Read More
Hi! I am an English Language and Literature graduate; I have written many academic essays, including argumentative essays, research papers, and literary analysis.
Dr. Evelyn Dougherty
98% Success Rate
Read More
"Hi, count on me to deliver quality papers that meet your expectations. I write well researched papers in the fields of nursing and medicine".
Dr. Paul P. Klug
99% Success Rate
Read More
"A top writer with proven reliability and experience. I have a 99% success rate, overall rating of 10. Hire me for quality custom written nursing papers. Thank you"

We Offer the Custom Writing Service with 3 Key Benefits

Affordable Writing Service

We guarantee a perfect price-quality balance to all students. The more pages you order, the less you pay.

The Best Support Service

Get 24⁄7 help with proofreading and editing your draft – fixing your grammar, spelling, or formatting.

Quality Essay Help

Our team of professional writers guarantees top-quality essay writing results.

Stay In Touch!

Leave your email and get discount promo codes and the best essay samples from our writers!
Chat With Us
Chat With Us