Question: The profitability index: method is most commonly used when deciding between mutually exclusive projects of varying size. produces results which typically are difficult to comprehend.

The profitability index:
method is most commonly used when deciding between mutually exclusive projects of varying size.
produces results which typically are difficult to comprehend.
rule adjusts for a project's size when determining which one of two projects to accept.
is useful as a decision tool when investment funds are limited and all available funds are allocated.

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