Profitability index

Profitability Index (PI) A DISCOUNTED cash flow method used in capital budgeting to evaluate the financial viability of investment proposals.

profitability index
Ratio of net present value to initial investment.
PV (present value of cash flows) ...

Profitability index
The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio.
Profitability ratios ...

Profitability index - The ratio of the total present value (PV) of future cash inflows to the initial investment (I).

Profitability index
A profitability index, also known as the benefit/cost ratio of a capital-expenditure project, is defined as the ratio of discounted after-tax cash inflows divided by discounted after-tax outflows.

Profitability Index Rule
A regulation for evaluating whether to proceed with a project or investment.

Also called the profitability index. Cost of capital The required return for a capital budgeting project. Cost of carry Out-of-pocket costs incurred while an investor has an investment position.

Also called the profitability index. Cost centerAny division, department, or subsidiary of a company that has expenses but is not directly producing revenues. Cost of capitalThe required return for a capital budgeting project.

Portfolio margin
Power reverse dual currency note
Private equity
Professional certification in financial services
Profitability index
Prosperity consciousness
Public float
Purchase price adjustment ...

The net present value of an investment divided by the investments initial cost. Also called the profitability index.
Cost company arrangement ...

Cost-benefit ratio
The net present value of an investment divided by the investment's initial cost. Also called the profitability index.
Cost of capital
The required return for a capital budgeting project.

of different projects to select which projects to pursue in order to generate maximum return or wealth for the company's stockholders. Companies do so by considering the average rate of return, payback period, net present value, profitability index, ...

Action by short-term securities traders to cash in on gains created by a sharp market rise, which pushes prices down temporarily but implies an upward market trend. See: Ring the [cash] register.
Profitability index ...

Profitability index: in investment appraisal, the net present value of cash inflows / the initial out lays.
Profit and Loss (P&L) Account: a financial statement which measures and reports the profit earned over a period of time.

Also called the profitability index. Counter trade The exchange of goods for other goods rather than for cash; barter.

Also called the profitability index. Cost company arrangement Arrangement whereby the shareholders of a project receive output free of charge but agree to pay all operating and financing charges of the project.

See also: Expense, Net present value, Cost of capital, Cost-benefit ratio, Internal rate of return