Profitability Index Calculator
Parameter | Description | Example Value |
---|---|---|
Present Value of Cash Flows | The present value of the expected cash flows from the investment. | $150,000 |
Initial Investment | The initial cost of the investment. | $100,000 |
Profitability Index | The ratio of the present value of cash flows to the initial investment (Present Value of Cash Flows / Initial Investment). | 1.5 |