Mastering Capital Rationing: The Profitability Index Explained

Dive into the world of capital rationing with us! Discover how organizations navigate limited funds to choose the best investment projects. We break down hard and soft capital rationing and introduce you to the Profitability Index (PI)—the ultimate tool for maximizing returns. Learn how to calculate and rank projects based on their PI, ensuring every dollar invested works harder for you. Plus, we’ll discuss the importance of nonfinancial factors and divisibility in decision-making. Join us for insights that can transform your capital allocation strategy!