Which of the following is true about the project profitability index? The initial investment in a new project is reduced by any salvage value expected to be received in the future when the project has ended. It is computed as the net present value of a project divided by the project's initial investment. If two projects have the same net present value, the project requiring the higher initial investment will have the higher profitability index. It will always result in the same preference ranking as the net present value method