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Subject: Finance
Details: a. As the firm moves to consider conditions of capital rationing, it must consider portfolios of capital projects. Precisely and completely describe why this is the case.

b. Under conditions of capital rationing and certainty, precisely and completely describe a methodology that you would utilize to help the firm achieve its primary goal. In your description, start with the decision variables that your would include in your model and then continue with all of the other components of your model.

c. Fully defend the methodology that you have recommended in part b).

d. Precisely and completely describe how you would carry out sensitivity analysis on the methodology that you recommend. Also discuss why this step is vitally important

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This is one approach you can follow:
<br><br>1. You must start with clearly defining the primary goal of the company. Is it survival, growth, or maintenance? Does it have any specific objectives like expansion of Markets or to stave off aggressive competition?
<br><br>2. You must also determine the degree of capital rationing, which is the capital, which would have been needed under optimal conditions and state precisely the percentage of that capital which is now available.
<br><br>3. Now according to the goals of the company, which you have defined, you need to prioritize the use of available capital. Your model should reflect that high priority portfolios get a larger percent of ...

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