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The profitability index can also get referred to as the benefit-cost ratio. Even though some projects have higher net present values, they might not have the highest profitability index. A profitability index greater than 1.0 is often considered a good investment, as the expected return is higher than the initial investment. Analysts mitigate this limitation […]
The profitability index rule is a decision-making exercise that helps evaluate whether to proceed with a project. The index itself is a calculation of the potential profit of the proposed project. The rule is that a profitability index or ratio greater than 1 indicates that the project marketing services for payroll companies should proceed. A […]
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