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Now let’s talk about the rel=nofollow attribute. Nofollow is method (introduced in 2005 and supported by multiple search engines) to annotate a link to tell search engines “I can’t or don’t want to vouch for this link.” In Google, nofollow links don’t pass PageRank and don’t pass anchortext[*].
So what happens when you have a page with “ten PageRank points” and ten outgoing links, and five of those links are nofollowed? Let’s leave aside the decay factor to focus on the core part of the question. Originally, the five links without nofollow would have flowed two points of PageRank each (in essence, the nofollowed links didn’t count toward the denominator when dividing PageRank by the outdegree of the page). More than a year ago, Google changed how the PageRank flows so that the five links without nofollow would flow one point of PageRank each.