The profitability index is the right but not the obligation to make a business decision.

Question

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The profitability index is actually a financial tool used to help businesses evaluate potential investment opportunities. It calculates the ratio of the present value of expected future cash flows to the initial investment, which helps determine whether the investment is likely to be profitable or not. The profitability index does not provide a right or obligation to make a business decision; rather, it is a tool to aid in decision-making.

The Profitability Index Is the Right but Not the Obligation