Describe how the profitability index is calculated and, Ask an Expert

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a. Describe how the profitability index is find outd, and describe the information this measure provides about a sequence of cash flows. What the profitability index decision rule?

b. What is the relationship between the profitability index and NPV? Are there any situations in which you might prefer one method over the other?

Need about 2-3 sentences (paragraph at most) for both parts

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