Net present value method is the method which is used to compare the initial
Profitability index:
Profitability index is a technique, which is used to rank the proposals of the business. It is used by the management when the business has more investment proposals and limited fund.
The Profitability index is computed as follows:
To determine: The net present value and profitability index for the given proposals.
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Managerial Accounting: Tools for Business Decision Making
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