Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. could anyone explain why a profitability index may

Could anyone explain why a Profitability Index may lead to inaccurate decisions when comparing mutually exclusive...

60.1K

Verified Solution

Question

Finance

Could anyone explain why a Profitability Index may lead toinaccurate decisions when comparing mutually exclusive investments?Thanks

Answer & Explanation Solved by verified expert
4.1 Ratings (673 Votes)
FormulaProfitability index PIPresent value of future cash flows initial cash outflow 1Net Present Value Initial Cash outflow    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Could anyone explain why a Profitability Index may lead toinaccurate decisions when comparing mutually exclusive investments?Thanks

Other questions asked by students

Q

Consider the vector field F(x,y,z) =?2xycos(z) + 1,x2cos(z) +zeyz,yeyz?x2ysin(z)?. Use the component test to determine if F...

Basic Math
Q

1. Of the six classes of synovial joints, how many are classified as biaxial? 1 2 3 4 2 Which of...

Medical Sciences
Q

Identify FM Broadcasting System in wireless communication and design circuit. Draw the appropriate circuit diagram or functioning diagram. Develop...

Electrical Engineering
Q

What part of our skeletal system serves to protect our vital organs (i.e., the brain,heart,...

Biology
Q

The top of a swimming pool is at ground level If the pool is 2...

Physics
Q

Let f x y xex2 y and P 1 1 a Calculate VfP b Find...

Basic Math
Q

The distribution of IQ Intelligence Quotient is approximately normal in shape with a mean of...

Statistics
Q

The adjusted trial balance of Boston Irrigation System at December 31 comma 2024,follows:...

Accounting
Q

The posting system is an arrangement between MLB and the Nippon Professional Baseball League that...

Accounting
Q

Sheffield Company uses a periodic inventory system. Details for the inventory account for the month...

Accounting
Q

Recently. per capita spending on health care in the United States was about $5,000. If...

Accounting
Q

Do you think interim reporting enhances the quality of information or it distorts the quality...

Accounting