General Studies · Capital Budgeting
Under conditions of single-period capital rationing with divisible projects, which metric is most appropriate for ranking projects?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Net Present Value (NPV)
- 2Internal Rate of Return (IRR)
- 3Profitability Index (PI)✓
- 4Payback Period
Correct answer
Profitability Index (PI)
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