Calculate The Profitability Index

Profitability Index - Learn How to Calculate the …

https://corporatefinanceinstitute.com/resources/accounting/profitability-index/

The formula for the PI is as follows: or Therefore: 1. If the PI is greater than 1, the project generates value and the company may want to proceed with the project. 2. If the PI is less than 1, the project destroys value and the company should not proceed with the project. 3. If the PI is equal to 1, the project breaks even and th… See more

Profitability Index (PI): Definition, Components, and Formula

https://www.investopedia.com/terms/p/profitability.asp

The profitability index for the new factory project is then calculated as: PI = PV / Initial Investment PI = $1,125,479/ $2,000,000 PI = 0.56

Profitability Index Calculator | Good Calculators

https://goodcalculators.com/profitability-index-calculator/

Profitability Index (PI) | Formula + Calculator - Wall Street Prep

https://www.wallstreetprep.com/knowledge/profitability-index/

The PI formula will consist of two parts: In the numerator, we’ll take the NPV and add back the initial investment. In the denominator, we’ll link to the initial investment cell with a …

Profitability Index Formula | Calculate Profitability Index (Examples)

https://www.wallstreetmojo.com/profitability-index-formula/

Steps to Calculate Profitability Index Firstly, the initial investment in a project has to be assessed based on the project requirement in …

Profitability Index Formula Explained (With Examples)

https://www.ferventlearning.com/profitability-index-formula-explained/

So how to calculate the profitability index? One way is to take the NPV and divide it by the initial investment: As simple as that. This shows you how much money you make for every one dollar or one …

Profitability Index Calculator | iCalculator™

https://finance.icalculator.info/profitability-calculator.html

The PI ratio calculations are based on the following formula: Profitability Index = pv / i Where: The initial investment (i) is the amount that you are planning to invest to start a project. The present value (pv) of future cash …

What Is the Profitability Index? Definition & Calculation

https://www.freshbooks.com/en-gb/hub/accounting/profitability-index

Profitability Index = (Net Present Value + Initial Investment) / Initial Investment As mentioned above, having a profitability index higher than 1 is ideal. But, …

Profitability Index Formula | Calculator (Excel template) - EDUCBA

https://www.educba.com/profitability-index-formula/

Profitability Index is calculated using given below formula Profitability Index = PV of Future Cash Flows / Initial Investment Profitability Index = (Net Present Value + Initial Investment) / Initial Investment First, we …

Profitability Index Formula (with Calculator) - finance formulas

https://financeformulas.net/Profitability-Index.html

The profitability index formula is used calculate the profitability of a project based on its future discounted returns relative to the initial investment. The PV of future cash flows …