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Explanation & Answer

Please view explanation and answer below.Hello this is for the first question
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According to the finance director, the company is not subject to any form of External
Capital Rationing. Before emphasizing the director’s statement is imperative to know what is
capital rationing. Capital rationing is a method that involves selecting the most lucrative
projects in which to invest the available resources. During the course of a company's capital
budgeting process, it may be necessary to use ...
