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    Foundations of Finance
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    Exam 10: Capital-Budgeting Techniques and Practice
  5. Question
    Both the Profitability Index (PI)and Net Present Value (NPV)are Based
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Both the Profitability Index (PI)and Net Present Value (NPV)are Based

Question 126

Question 126

True/False

Both the profitability index (PI)and net present value (NPV)are based on the present value of all future free cash flows,but the PI is a relative measure while the NPV is an absolute measure of a project's desirability.

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