Describe a typical capital budgeting decision process

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Reference no: EM131279152

1. How does the presence of real options influence the capital budgeting decision?

2. Describe a typical capital budgeting decision process.

3. Are decisions made solely on the basis of quantitative factors? Explain your answer.

4. What is capital rationing?

5. From a financial perspective, how are projects chosen when capital rationing exists?

6. What is the profitability index, and why is it useful under capital rationing?

Reference no: EM131279152

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