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The P/I, or Profitability Index, does not always guarantee correct decisions in comparing mutually exclusive investments.
False. The P/I (Profitability Index) is a capital budgeting technique that provides the ratio of the present value of future cash flows to the initial investment. While it helps in evaluating investments, it does not always lead to correct decisions in comparisons of mutually exclusive investments as it doesn't consider the size or scale of the investments.
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