The document discusses various complications that can arise in capital budgeting and methods for addressing them. It describes situations where a firm cannot undertake all positive NPV projects due to constraints. When projects are mutually exclusive, the document recommends choosing the one with the highest NPV. It also introduces the concept of equivalent annual cash flow (EACF) as a method for comparing projects with different time horizons or lives. Specific complications covered include replacement decisions, excess/peak capacity, and capital rationing.