07.02.2010
06.02.2010
PI = Present value of cash inflows/present value of cash outflows at a given discount rate. Profitability Index captures the present value per dollar of investment (biggest bang for the buck). PI = [NPV+PV(Investment)]/PV(Investment)
Or another definition is NPV/I = NPV/PV(Investment). PI=NPV/I + 1
05.02.2010
