Https and Profitability index: Difference between pages

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imported>Doug Williamson
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{{lowercase}}''Cybersecurity.''
(PI).  


Hypertext Transfer Protocol, Secure.
''Investment appraisal''
 
The profitability index of a project or other proposed investment may be 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.
 
 
Calculated on this basis, projects with a PI > 1 are acceptable.
 
 
==Alternative definition==
 
The profitability index may also be represented by the following alternative formula:
 
Profitability index = NPV/Co
 
Where:
 
NPV = net present value of all positive and negative cashflows, including the initial investment outflow Co
 
 
When defined on this alternative basis, the minimum threshold of acceptability becomes a profitability index of 0.




== See also ==
== See also ==
* [[Cybersecurity]]
* [[Capital rationing]]
* [[Encryption]]
* [[Net present value]]
* [[Hypertext Transfer Protocol, Secure]]
* [[Payback period]]
* [[Information technology]]
* [[Present value]]
* [[Transport Layer Security]]
* [[World wide web]]  (www)


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Technology]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 09:04, 8 February 2022

(PI).

Investment appraisal

The profitability index of a project or other proposed investment may be 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.


Calculated on this basis, projects with a PI > 1 are acceptable.


Alternative definition

The profitability index may also be represented by the following alternative formula:

Profitability index = NPV/Co

Where:

NPV = net present value of all positive and negative cashflows, including the initial investment outflow Co


When defined on this alternative basis, the minimum threshold of acceptability becomes a profitability index of 0.


See also