If two projects require the same amount of investment,then the preference ranking computed using either the project profitability index or the net present value will be the same.

Question

Quizplus · Accepted Answer

Both the project profitability index and the net present value methods take into consideration the present value of the expected cash flows and the initial investment required for the project. Therefore, if two projects require the same amount of investment, the preference ranking computed using either method will be the same.

If Two Projects Require the Same Amount of Investment,then the Preference