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    Corporate Finance Study Set 5
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    Exam 8: Net Present Value and Other Investment Criteria
  5. Question
    When Using a Profitability Index (Ratio of Net Present Value
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When Using a Profitability Index (Ratio of Net Present Value

Question 16

Question 16

True/False

When using a profitability index (ratio of net present value to initial investment)to select projects,a value of 0.63 is preferred over a value of 0.21.

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