The project profitability index and the internal rate of return:

A) will always result in the same preference ranking for investment projects.
B) will sometimes result in different preference rankings for investment projects.
C) are less dependable than the payback method in ranking investment projects.
D) are less dependable than net present value in ranking investment projects.

The project profitability index (PPI) and the internal rate of return (IRR) may result in different preference rankings for investment projects under certain circumstances. The PPI takes into account the ratio of the present value of cash inflows to the initial investment, while the IRR calculates the discount rate that makes the net present value of cash inflows equal to zero. Therefore, for projects with different sizes or timings of cash flows, the PPI and IRR may provide different rankings. This is especially true when comparing mutually exclusive projects. Therefore, it is important to consider both the PPI and IRR, along with other measures such as net present value, when evaluating investment projects.