Advantage of profitability index method, Financial Management

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Q. Advantage of Profitability Index method?

Advantage of PI method:-

(i) Similar to the other DCF techniques the PI method as well takes into account the time value of money.

(ii) It considers every cash flow during the life-time of the project

(iii)PI method is a dependable method in comparison to the NPV method when the preliminary investment in various projects is different.


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