The method provides correct rankings of mutually exclusive projects, when the firm is not subject to capital rationing.

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net present value

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>>>>>>>>>>>> net present value

NPV is the primary decision making factor for project financing. So, Capital rationing is one of the depending factors of NPV.

>>>>>>>>>>>>>>net present value

Net Present Value The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. 

The following is the formula for calculating NPV: 

where:

Ct = net cash inflow during the period

Co= initial investment

r = discount rate, and

t = number of time periods 

Thanks to experts 

Well answers 

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profitability index

My answer is option (A) Net Present Value

net present value   is correct answer ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,....................,,,,,,,,,,,,,.......