Assignment:
Q1. How does the presence of real options influence the capital budgeting decision?
Q2. Describe a typical capital budgeting decision process.
Q3. Are decisions made solely on the basis of quantitative factors? Explain your answer.
Q4. What is capital rationing?
Q5. From a financial perspective, how are projects chosen when capital rationing exists?
Q6. What is the profitability index, and why is it useful under capital rationing?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.