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Which of the following is true regarding the project profitability index and the net present value method of evaluating investment opportunities? Multiple Choice The two
Which of the following is true regarding the project profitability index and the net present value method of evaluating investment opportunities? Multiple Choice The two methods will always result in the same preference ranking for investment projects. o For two projects with same net present value, the project requiring a lower initial investment will have a higher profitability ranking than a project requiring a higher initial investment. o Both methods ignore the time value of money. o o Projects lasting the same number of periods will have the same preference ranking under the two methods
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