18. Profitability index (S5.4) Sometimes firms use the profitability index as an investment criterion when there is
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18. Profitability index (S5.4) Sometimes firms use the profitability index as an investment criterion when there is no rationing of capital or other resources. Look back at the pitfalls surrounding the IRR. Do you think that these would also apply to the use of the profitability index?
144 Part One Value
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Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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