305. Profitability index in capital budgeting is used for

negative projects
relative projects
evaluate projects
earned projects
✅ The correct answer is C.
Profitability index in capital budgeting is used for evaluating projects. The profitability index is an appraisal technique applied to potential capital outlays and is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.

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