divisible project are ranked on the basis
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- Divisible projects are those that a company can accept or reject in parts.
- These projects are unrelated and do not rely on any other components.
- Companies must first calculate the profitability index and net present value of divisible projects.
- Then, based on the calculation, they must rank different divisible projects and choose the best option.
- It will ensure that the company's returns on investment are maximised.
Hence, divisible project is ranked on the basis of profitability index and the net present value of the project.
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