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In capital budgeting, what is the profitability index used for?

Correct answer C. Evaluate projects

Explanation

The profitability index divides the present value of future cash flows by the initial outlay, giving a benefit-cost ratio used to evaluate and rank investment projects.

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In capital budgeting, what is the profitability index used for?

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In capital budgeting, what is the profitability index used for?

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