Multiple Choice
A company uses the Profitability Index to assess investment opportunities when:
A) The flows from the investment alternatives are unequal.
B) The investment alternatives are mutually exclusive.
C) Insufficient funding exists to invest in all the non-divisible projects.
D) A company is subject to capital rationing.
E) Risks from inflation impact projects individually.
Correct Answer:
Verified
Correct Answer:
Verified
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