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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.
Modern approach at financial problems With the advent of technology and need to tighten shipsdue to competition, financial management became as much a science as art. Efficient
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