Proﬁtability index employs some sort of arbitrary value against which the project measurement must
be compared when determining whether to accept or reject a project.

Name: Proﬁtability index employs some sort of arbitrary value against which the project measurement must be compared when determining whether to accept or reject a project.
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Question

Quizplus · Accepted Answer

The profitability index is a ratio that compares the present value of future cash flows to the initial investment, not an arbitrary value.

Proﬁtability Index Employs Some Sort of Arbitrary Value Against Which