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Which of the following is the disadvantage of the profitability index ( PI ) ? Multiple choice question. Ignores the time value of money. May

Which of the following is the disadvantage of the profitability index

(

) ?

Multiple choice question.

Ignores the time value of money.

May lead to incorrect decisions in comparisons of mutually exclusive investments.

Requires an arbitrary cutoff point.

Ignores cash flows beyond the cutoff point.

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