The profitability index is the least preferable method to use to evaluate capital budgeting projects because it does not take the time value of money into account.

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The profitability index is actually a useful method to evaluate capital budgeting projects because it takes into account the time value of money. It calculates the present value of future cash flows and compares it to the initial investment, providing insight into the project's potential profitability.

The Profitability Index Is the Least Preferable Method to Use