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Q1 Which one of the following is a disadvantage of the Profitability Index? Multiple Choice Easy to understand and communicate. Closely related to NPV, generally

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Which one of the following is a disadvantage of the Profitability Index? Multiple Choice Easy to understand and communicate. Closely related to NPV, generally leading to identical decisions. May be useful when available investment funds are limited. May lead to incorrect decisions in comparison of mutually exclusive investments

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