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Profitability index
Leveraging Profitability Index in Investment Assessment
December 11, 2023
What are the advantages of using the profitability index in capital budgeting?
The profitability index measures the relationship between investment return and initial outlay. Its advantages lie in enabling comparisons between projects of varying sizes, offering a clear ratio for decision-making, and helping maximize returns per unit of investment.
Tags : Profitability Index , Capital Budgeting , Investment Analysis