The profitability index is calculated as the present value of future cash flows divided by the initial investment.This is the formula for the profitability index.
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Q1: The net present value method is a
Q2: The net present value method compares a
Q3: To find the present value of a
Q4: Independent projects are unrelated to one another,so
Q5: The payback period is defined as the
Q7: The internal rate of return method uses
Q8: If a project has a positive net
Q9: If the hurdle rate is greater than
Q10: A profitability index greater than zero means
Q11: The accounting rate of return is the
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