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correct definition of productivity index tool is useful in placing projects of vastly different size into context assumes that the cash flows from the various
correct definition of productivity index tool
is useful in placing projects of vastly different size into context assumes that the cash flows from the various projects are reinvested at the Internal Rate of Return instead of reinvested at the firm's WACC will surpass the validity of the NPV technique in deciding among capital budgeting projects. averages the NPV of all positive NPV projects to arrive at a profitability index
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