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Which of the following is false regarding Profitability Index? 1. May lead to incorrect decisions in comparisons of projects because of project scale or size

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Which of the following is false regarding Profitability Index? 1. May lead to incorrect decisions in comparisons of projects because of project scale or size II. Does not consider all of the cash flows of a project III. Always gives the same decision as NPV when evaluating an independent project All three are false O II and III O ll only land 11 O All three are true

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