Problem
1. Explain the purpose and basic principle of capital budgeting and how it works to serve the business?
2. List, explain, and compare the capital budgeting technical tools by which the proposed investment projects are usually evaluated for acceptance and allocation.
3. What is capital rationing? When should a firm ration its capital and what are the criteria and the process for such rationing?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.