Which of the following statements is true?

In preference decisions, the profitability index and internal rate of return methods will rank projects in the same order of preference.

a$.$ Ihicalculating the "investment required" for the profitability index, the amount invested should not be reduced by any salvage recovered from the sal

biquipment.

WWhifen computing the profitability index of an investment project, the investment required should exclude any investment made in working capital at begirning of the project.

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Multiple Choice

All of the statements are true.

None of the statements are true.