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Forums › ACCA Forums › ACCA FM Financial Management Forums › Indivisible projects
Hi
If PI is used to rank divisible projects only -= what is used to rank indivisible projects?
You maximize the sum of their NPVs
you don’t rank them individually then.
add investment required & NPV of indivisible project
match it to capital available.
whichever generate More NPV is chosen.
You find the best combination only by trial and error as compared to divisible projects which are ranked by use of their profitability index
hi
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