Profitability Index: Revision history

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13 June 2024

  • curprev 05:3405:34, 13 June 2024‎ Ai talk contribs‎ 5,125 bytes +5,125‎ Created page with "== Overview == The **Profitability Index (PI)**, also known as the **Profit Investment Ratio (PIR)** or **Value Investment Ratio (VIR)**, is a financial metric used to evaluate the attractiveness of an investment or project. It is calculated by dividing the present value of future cash flows by the initial investment cost. The formula for the profitability index is: \[ \text{PI} = \frac{\text{Present Value of Future Cash Flows}}{\text{Initial Investment}} \] A PI grea..."
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