The profitability index is the ratio of the present value of the future free cash flows to the initial investment.
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Q34: NPV assumes reinvestment of intermediate free cash
Q35: The internal rate of return will equal
Q36: If a project's profitability index is less
Q37: NPV is the most theoretically correct capital
Q38: The main disadvantage of the NPV method
Q40: One positive feature of the payback period
Q41: A project that is very sensitive to
Q42: Project W requires a net investment of
Q43: Any project deemed acceptable using the discounted
Q44: Many financial managers believe the payback period
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