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Suppose you are using the Pl method to evaluate mutually exclusive capital budgeting projects. You should choose the project
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Answer #1

Answer: True

PI = Present value of cash inflow / present value of cash outflows.

PI = 0, implies present value of cash inflows = present value of cash outflows.

so, for a project to get selected, PI should be greater than zero.

so higher the PI more the profitability

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