Question: Elaine is evaluating two investments investment 1 has a profitability index
Elaine is evaluating two investments—investment 1 has a profitability index (PI) of 2.4 while investment 2 has a PI of 1.2. As these investments are mutually exclusive, Elaine is recommending investment 1. The Chair of the board of BigCo has asked for your comments on Elaine’s recommendation.
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