Profitability Index is defined as the present value of future cash flows divided by the initial investment. #CFA #Finance #investment | By Professional Finance Studies (PFS) | Facebook
![Net Present Value - NPV, Profitability Index - PI, & Internal Rate of Return - IRR Using Excel - YouTube Net Present Value - NPV, Profitability Index - PI, & Internal Rate of Return - IRR Using Excel - YouTube](https://i.ytimg.com/vi/pj5wN7TUdOY/maxresdefault.jpg)
Net Present Value - NPV, Profitability Index - PI, & Internal Rate of Return - IRR Using Excel - YouTube
![Trends of (a) Net Present Value (NPV), b) Pay-back period (PBP), c)... | Download Scientific Diagram Trends of (a) Net Present Value (NPV), b) Pay-back period (PBP), c)... | Download Scientific Diagram](https://www.researchgate.net/publication/280610835/figure/fig2/AS:614224317403136@1523453897124/Trends-of-a-Net-Present-Value-NPV-b-Pay-back-period-PBP-c-Internal-Rate-of.png)
Trends of (a) Net Present Value (NPV), b) Pay-back period (PBP), c)... | Download Scientific Diagram
Concepts'n'Clarity - A profitability index (PI) of 0.92 for a project means that : A. The project's costs (cash outlay) are (is) less than the present value of the project's benefits B.
![A Framework for Interpreting Realized Economic Value From Data Science Projects | by Neeraja Sarda | Medium A Framework for Interpreting Realized Economic Value From Data Science Projects | by Neeraja Sarda | Medium](https://miro.medium.com/v2/resize:fit:1358/1*wzrPcbO1-UzFhCPcYDTnmg.png)