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Fallout of Capital Rationing

Fallout of Capital Rationing Capital rationing limit is the amount to be spent on capital expenditure decisions. The firm may be such a limit primarily for two reasons : (i) there may be a paucity of funds and (ii) corporate managers/owners may be conservative and may...

Computational Problems

Computational Problems Apart from inconsistency in the application or me reinvestment rate, the IRR method also suffers from computational problems. These may be discussed with reference to two aspects. Computation in Conventional Cash Flows It has been shown while...