Regarding profitability index

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Reference no: EM13948659

Which of the following is false regarding Profitability index?

A. May be useful when available investment funds are limited.

B. Does not consider all of the cash flows of a project

C. May lead to incorrect decisions in comparisons of mutually exclusive projects

D. Closely related to NPV, generally leading to identical decisions.

E. Easy to understand and communicate

Reference no: EM13948659

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