Under conditions of limited resources,when a company is comparing several investments with different amounts of initial outlay,the decision should be made on the basis of the ________.

Question

Quizplus · Accepted Answer

The profitability index (PI) is a useful tool for comparing investments with different initial outlays under limited resources, as it measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Under Conditions of Limited Resources,when a Company Is Comparing Several