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Which of the following statements is true regarding the profitability index? A. It is a relatively simple approach to comparing independent alternative projects. B. A

Which of the following statements is true regarding the profitability index? A. It is a relatively simple approach to comparing independent alternative projects. B. A profitability index of 1 signifies a positive net present value for the investment. C. This method takes into account both the size of the original investment and the discounted cash flows. D. All of the above statements are true.

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