What is Profitability Index How to Calculate it
Financen31429 Jun, 2021Other
Profitability index definition illustrates the relationship between the future cash flows of the company and the company?s initial investment, and this is shown by manipulating the ratio and evaluating the project feasibility. It is also known by the name profit investment ratio as it is calculated by adding one and dividing the present value of the company?s cash flows by initial investment.
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