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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.
Jan 7, 2024 · Learn how to calculate the profitability index (PI), a financial metric that compares the present value of future cash flows to the initial investment cost. PI helps assess the potential profitability of a project and compare different investment opportunities.
Learn how to calculate the PI, a financial metric that compares the present value of future cash flows to the initial investment cost. See examples, importance, and FAQs of PI for business and finance decisions.
