Do you believe companies should use the profitability index

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Reference no: EM133777076

Problem: Profitability Index

I. Profitability Index tells us which project will give the organization the best bang for its buck when the company has to choose between two projects that show a positive NPV. What do you think?

II. Do you believe companies should use the Profitability Index all the time or only when capital rationing has been placed?

Reference: Cutler, C. (n.d.). Profitability index vs net present value: which one is better? Innovation Properties Group.

Reference no: EM133777076

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