Define the term profitability index. How is it used in ranking investment proposals?

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Managerial Accounting Creating Value in a Dynamic Business Environment

ISBN: 978-0078110917

9th edition

Authors: Ronald W. Hilton

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Question Posted: Oct 06, 2016 08:36 AM

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Define the term profitability index. How is it used in ranking investment proposals?

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The profitability index PI is defined as the present value of cash flows ex...View the full answer

Managerial Accounting Creating Value in a Dynamic Business Environment

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