Profitability Index

Per the strict observance of the rules of Profitability Index, this project would be accepted because it meets the definition of >1. But as your pointed out, there are other considerations to factor into this decision. Most business decisions have a basis in financial support - or reason for undertaking a project. But there are non-quantitative reasons for undertaking or not undertaking a project...

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What are some non-financial reasons for undertaking a project that has a Profitability Index of less than 1?

Also, what are some non-financial reasons for not undertaking a project that has a Profitability Index of greater than 1?