Ian corp. is considering two expansion projects. the first project streamlines the company's warehousing facilities. the second project automates inventory utilizing bar code scanners. both projects generate positive npv, yet ian corp. only chooses the bar coding project. why?

The answer is "the company is practicing capital rationing".

Capital rationing is the demonstration of setting limitations on the measure of new speculations or ventures attempted by an organization. This is practiced by forcing a greater expense of capital for venture thought or by setting a roof on explicit parts of a financial plan. Organizations might need to actualize capital apportioning in circumstances where past returns of a venture were lower than anticipated.  

Capital rationing is basically an administrative way to deal with dispensing accessible assets over numerous venture openings, expanding an organization's main concern.  

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