In the absence of capital rationing, the net present value method is normally superior to the ____ method when choosing among mutually exclusive investments.
I. internal rate of return
II. profitability index
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Question

In the absence of capital rationing, the net present value method is normally superior to the ____ method when choosing among mutually exclusive investments. 
I. internal rate of return
II. profitability index
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Quizplus · Accepted Answer

The Answer is D

In the Absence of Capital Rationing, the Net Present Value