The use of a profitability index will always provide results consistent with selecting the project with the:
A)Highest NPV
B)Highest IRR
C)Largest dollar invested per rate of return
D)Largest return per dollar invested

Question

Quizplus · Accepted Answer

The profitability index measures the return per dollar invested, aligning with the concept of maximizing returns relative to investment.

The Use of a Profitability Index Will Always Provide Results