Profitability Index (PI)
Profitability index is a ratio that identify and compares the relationship between the total costs involved in the project and the profit returned from that project. The ratio of profitability…
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Profitability index is a ratio that identify and compares the relationship between the total costs involved in the project and the profit returned from that project. The ratio of profitability…
Profitability Index Definition: Profitability index is the ratio of the present value of a project's cash inflows to the investment required.
Ranking Investment Projects - The Preference Decisions: Learning Objectives: Define and explain screening and preference decisions. Rank investment projects in order of preference. When considering investment opportunities, managers must make…