Asked by
Sydney Kimball
on Nov 08, 2024
Verified
Projects should be accepted when the profitability index is less than 1.
Profitability Index
A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.
Accepted
Acknowledged or approved, typically in the context of an agreement or transaction.
- Learn to adeptly evaluate investments using the profitability index (PI).
Verified Answer
MR
Learning Objectives
- Learn to adeptly evaluate investments using the profitability index (PI).
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