Use of a profitability index to select projects in the absence of capital rationing:
A) will provide the same rankings as an NPV criterion.
B) will maximize NPV, but not IRR.
C) can result in misguided selections.
D)is technically impossible.

Question

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The Answer of Use of a profitability index to select projects in the absence of capital rationing:
A) will provide the same rankings as an NPV criterion.
B) will maximize NPV, but not IRR.
C) can result in misguided selections.
D)is technically impossible.

Use of a Profitability Index to Select Projects in the Absence