profitability index pi it is a ratio of the, Financial Management

+44 141 628 6080
[email protected]

profitability index pi it is a ratio of the

Profitability Index (PI) :

It is a ratio of the present value of the total cash benefits to the present value of the net cash outlay. The higher the PI, the higher the return. Any project with a PI higher than ONE is acceptable since profits exceed outlay. Projects with PI less than ONE are rejected.

Advantages:

It places the present value of every investment project on a relative basis so that projects of dissimilar sizes of capital outlays can be compared.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Financial Management: profitability index pi it is a ratio of the

Reference No:- TGS0174110

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Investigate the cause of the recent werewolf attacks

create a temporary committee to investigate the cause of the recent werewolf attacks in major cities throughout the United States.

Describe marxist theory and psychology of addiction

Compare the Marxist Theory and Psychology of Addiction with the Realistic Theory and psychology of Addition.

Explain framers decisions in creating the constitution

Explain how the Articles of Confederation made the above scenario possible. Describe how this scenario influenced the framers' decisions in creating the Constit

Federal bureaucracy has to put up with a lot of red tape

Question: The Federal Bureaucracy has to put up with a lot of "red tape". What is "red tape" in regards to government?

What power of recognition when it comes to office president

Question: What is "power of recognition" when it comes to the office of the president? Question Select one

What right ordinance power give to the president

Question: What right does the Ordinance Power give to the president? Question Select one:

Analyze leadership of organization during particular event

Analyze leadership of an organization during a particular event or across a defined set of events. The assignment will assess your ability to identify

Request for Solution File

Ask an Expert for Answer!!

Financial Management: profitability index pi it is a ratio of the

Reference No:- TGS0174110

Have a Question? (oR Write a Review)

Recent Questions Asked Financial Management

Q : advantages it is easy to calculate and catch with

Q : modern discounting cash flow techniques these

Q : net present value npv in this technique future

Q : internal rate of return irr this rate attempts to

Q : profitability index pi it is a ratio of the

Q : discounted pay back period dpbp the discounted

Q : cost of capitala projects cost of capital is the

Q : basic assumptions of cost of capitalthe cost of

Q : concepts of cost of capital1 explicit cost and