Search results
Jun 9, 2024 · The profitability index (PI), alternatively referred to as value investment ratio (VIR) or profit investment ratio (PIR), describes an index that represents the relationship between the...
The Profitability Index (PI) measures the ratio between the present value of future cash flows and the initial investment. The index is a useful tool for ranking investment projects and showing the value created per unit of investment.
Oct 3, 2023 · Learn how to calculate and interpret the profitability index (PI), a tool to measure the economic feasibility of a project or investment. Compare PI with NPV and see examples and a calculator.
Apr 15, 2024 · Learn how to calculate and interpret the profitability index (PI) to evaluate the profitability of a project. PI is the ratio of present value of future cash flows to initial investment, and it can be used to compare different projects.
May 31, 2021 · Learn how to use the profitability index rule to evaluate whether to proceed with a project. The rule is that a PI ratio greater than 1 indicates a profitable project, while a PI ratio below 1 indicates a loss.
Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project. It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.
Jan 6, 2020 · The profitability index (PI), also known as the profit investment ratio (PIR) or value investment ratio (VIR), is a capital budgeting tool that gauges the potential profitability of an investment or project.
