When computing the project profitability index of an investment project,the investment required should exclude any investment made in working capital at the beginning of the project.

Question

Quizplus · Accepted Answer

The investment required for computing the project profitability index should include all initial outlays, including any investment made in working capital at the beginning of the project, as it represents a necessary upfront cost for the project's operation.

When Computing the Project Profitability Index of an Investment Project,the