Question

If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem of

Answer 1

"Capital rationing" would be the appropriate answer.

Step-by-step explanation:

• Capital rationing is a systematic process for allocating remaining cash through various alternative investments, thus growing the bottom line of a financial institution.
• It consists of calculating profitability economic indicators across all projects as well as choosing the best ventures which result in the highest present value especially when associated.