Conditions of capital rationing and certainty

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As the company moves to consider situations of capital rationing, it must consider portfolios of capital projects. Precisely and completely explain why this is the case.

b. Under conditions of capital rationing and certainty, precisely and completely describe a methodology that you would utilize to help the firm achieve its primary goal. In your description, start with the decision variables that your would include in your model and then continue with all of the other components of your model.

c. Fully defend the methodology that you have recommended in part b).

d. Precisely and completely describe how you would carry out sensitivity analysis on the methodology that you recommend. Also discuss why this step is vitally important

 

Reference no: EM1366897

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