Profitability index: Difference between revisions
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Revision as of 14:20, 23 October 2012
(PI). The profitability index is represented by the following formula:
Profitability index = PV/Co
Where: PV = the present value of all the cashflows except the initial investment. Co = the absolute value of the initial investment.
Projects with a PI > 1 are acceptable.
See also
