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In capital rationing, a firm primarily seeks to control the estimation bias in cash flow projections. This is critical because capital rationing occurs when a company has limited resources available to invest in projects, necessitating careful selection of which projects to pursue. In this context, accurate cash flow projections are essential for evaluating the potential profitability of various investment opportunities.

When firms allocate a limited budget, they must ensure that their projections are realistic and free from bias, as overly optimistic estimates can lead to selecting poor investment options that do not provide the anticipated returns. By mitigating bias in cash flow forecasts, a company can make more informed decisions about which projects to fund, thereby optimizing their use of limited capital and aligning with their strategic goals.

Managing other aspects, such as the level of managerial hiring, the amount of debt for funding, or the variance in project returns, while important, does not directly relate to the primary focus of capital rationing. The main concern lies in ensuring that cash flow projections are as accurate as possible to make the best use of constrained resources.