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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.
what are the arguments in favour of profit maximization?
What is Indirect method Indirect method is what you would probably be familiar with. It requires a lot less information to produce it and hence can be argued to be easier metho
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