Why is the profitability index a better basis than net present value to compare projects that require different levels of investment?
The profitability index relates the magnitude of the net present value to the magnitude of the initial investment. Thus, the PI gives some indication of relative profitability. The NPV itself provides no direct indication of the level of investment that is required to generate the NPV and therefore provides no indication of relative profitability.
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In terms of a company generating buzz about its product, research has indicated that to generate true word-of-mouth communications from actual customers they must be aware of the brand, which typically requires:
A) the use of alternative marketing programs B) advertising through traditional channels C) guerilla marketing efforts D) a high level of brand equity
Which of the following accounts probably would have a smaller balance in the Adjusted Trial Balance columns of a work sheet than in the Trial Balance columns?
a. Prepaid Advertising b. Wages Payable c. Accumulated Depreciation–Equipment d. Wages Expense
Adding value with a cluster of satisfactions would be an effective way to deal with:
A) time resistance B) adaptive selling C) price resistance D) third-party testimonials E) decision postponements
Upon bankruptcy being declared, all the assets of the bankrupt are transferred into the possession of the Trustee in Bankruptcy
Indicate whether the statement is true or false