The major advantage provided by the profitability index is it: A) eli

The major advantage provided by the profitability index is it:

A) eliminates the need to estimate the firm’s cost of capital.
B) reduces the forecast error of cash flow estimates.
C) provides a better measure of the effects of a project on shareholder wealth than NPV.
D) is useful as an aid in raking projects from best to worst.
E) is easier to calculate than NPV.

ANSWER

D