Explain the meaning of the capital rationing, the reason why it may occur and how an organisation can determine the best way to invest available capital under capital rationing.
Success Ltd is considering to invest in a project with expected life of four years. The following forecast o future sales revenue and costs was prepared Sales Revenue Variable costs $000 $000 Year 1 1150 700 Year 2 2300 1000 Year 3 6500 2300 Year 4 4500 1630 The forecast for sale revenue is expressed […]