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Which of the following tools is sometimes used to rank investment proposals? 01. 02. 03. 04. 05. Project assessment guide (PA
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Answer #1

Correct answer----04-profitability index.

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Profitability index is used to asses various investments so as to know which investment is most profitable.

Profitability index is shown as a ratio of present of cash inflow to initial investment. A ratio of more than once is acceptable.

Higher the ratio more desirable investment is.

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