Source of conflict between npv and profitability index


Response to the following questions:

1. What is the source of the conflict between net present value and the profitability index decision rules in evaluating mutually exclusive projects?

2. Suppose you calculate a project's net present value to be $3,000. What does this mean?

Make sure you use enough details to support your answer.

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Financial Accounting: Source of conflict between npv and profitability index
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