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Profitability index in capital budgeting is used for

This question belongs to Commerce Financial Management
Financial Management
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Profitability index in capital budgeting is used for

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Correct Answer: Option C
Profitability index in capital budgeting is used for evaluating projects. The profitability index is an appraisal technique applied to potential capital outlays and is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.
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