Use the table for the question(s)below.
Consider the following list of projects:

-Assuming that your capital is constrained,which investment tool should you use to determine the correct investment decisions?
A)profitability index
B)incremental IRR
C)net present value (NP
D)internal rate of return (IR
E)payback period

Question

Use the table for the question(s)below.
Consider the following list of projects:
 
-Assuming that your capital is constrained,which investment tool should you use to determine the correct investment decisions?
A)profitability index 
B)incremental IRR 
C)net present value (NP
D)internal rate of return (IR
E)payback period

Quizplus · Accepted Answer

The profitability index is used to rank projects when capital is constrained, as it measures the value created per unit of investment.

Use the Table for the Question(s)below