Profitability Index - Revision history

Dirkjan at 19:25, 27 August 2020

2020-08-27T19:25:32Z

Dirkjan at 18:39, 27 August 2020

2020-08-27T18:39:24Z

Dirkjan: Created page with "The ''''Profitabilty Index''''' looks at the ratio of the NPV compared to the initial investment required: ${Profitability Index}$ = $\frac{NPV}$ {{Initi..."

2020-08-25T07:41:09Z

Created page with "The ''''Profitabilty Index''''' looks at the ratio of the NPV compared to the initial investment required: <math>{Profitability Index}</math> = <math>\frac{NPV}</math>{{Initi..."

New page

The ''''Profitabilty Index''''' looks at the ratio of the NPV compared to the initial investment required:

<math>{Profitability Index}</math> = <math>\frac{NPV}</math>{{Initial\ Investment}}<math></math>

Compare the following projects:
{| class="wikitable"
!Project
!<math>C_0</math>
!<math>C_1</math>
!<math>C_2</math>
!NPV at 10%
|-
|A
|-10
|+30
|+5
|21
|-
|B
|-5
|+5
|+20
|16
|-
|C
|-5
|+5
|+15
|12
|-
|}
The profitability index would be:
{| class="wikitable"
!Project
!Investment
!NPV
!Profitability Index
|-
|A
|10
|21
|2.1
|-
|B
|5
|16
|3.2
|-
|C
|5
|12
|2.4
|-
|}
[[Category:finance]]

[[Category:M12]]

[[Category:Principles of Corporate Finance]]

[[Category:Term]]

← Older revision		Revision as of 18:39, 27 August 2020
Line 1:		Line 1:
−	~~The ''''Profitabilty Index''''' looks at the ratio of the NPV compared to the initial investment required:~~	+	Profitability Index
−
−	~~<math>{Profitability Index}</math> = <math>\frac{NPV}</math>{{Initial\ Investment}}<math></math>~~
−
−	~~Compare the following projects:~~
−	~~{\| class="wikitable"~~
−	~~!Project~~
−	~~!<math>C_0</math>~~
−	~~!<math>C_1</math>~~
−	~~!<math>C_2</math>~~
−	~~!NPV at 10%~~
−	\|-
−	\|A
−	~~\|-10~~
−	~~\|+30~~
−	~~\|+5~~
−	~~\|21~~
−	\|-
−	\|B
−	~~\|-5~~
−	~~\|+5~~
−	~~\|+20~~
−	~~\|16~~
−	\|-
−	\|C
−	~~\|-5~~
−	~~\|+5~~
−	~~\|+15~~
−	~~\|12~~
−	\|-
−	\|}
−	~~The profitability index would be:~~
−	~~{\| class="wikitable"~~
−	~~!Project~~
−	~~!Investment~~
−	~~!NPV~~
−	!Profitability Index
−	\|-
−	\|A
−	~~\|10~~
−	~~\|21~~
−	~~\|2.1~~
−	\|-
−	\|B
−	\|5
−	~~\|16~~
−	~~\|3.2~~
−	\|-
−	\|C
−	\|5
−	~~\|12~~
−	~~\|2.4~~
−	\|-
−	\|}
	[[Category:finance]]		[[Category:finance]]

← Older revision		Revision as of 19:25, 27 August 2020
Line 1:		Line 1:
−	Profitability Index	+	The ''''Profitabilty Index''''' looks at the ratio of the NPV compared to the initial investment required:
		+
		+	<math>{Profitability Index}</math> = <math>\frac{NPV}</math>{{Initial\ Investment}}<math></math>
		+
		+	Compare the following projects:
		+	{\| class="wikitable"
		+	!Project
		+	!<math>C_0</math>
		+	!<math>C_1</math>
		+	!<math>C_2</math>
		+	!NPV at 10%
		+	\|-
		+	\|A
		+	\|-10
		+	\|+30
		+	\|+5
		+	\|21
		+	\|-
		+	\|B
		+	\|-5
		+	\|+5
		+	\|+20
		+	\|16
		+	\|-
		+	\|C
		+	\|-5
		+	\|+5
		+	\|+15
		+	\|12
		+	\|-
		+	\|}
		+	The profitability index would be:
		+	{\| class="wikitable"
		+	!Project
		+	!Investment
		+	!NPV
		+	!Profitability Index
		+	\|-
		+	\|A
		+	\|10
		+	\|21
		+	\|2.1
		+	\|-
		+	\|B
		+	\|5
		+	\|16
		+	\|3.2
		+	\|-
		+	\|C
		+	\|5
		+	\|12
		+	\|2.4
		+	\|-
		+	\|}
	[[Category:finance]]		[[Category:finance]]

Profitability Index - Revision history

Dirkjan at 19:25, 27 August 2020

Dirkjan at 18:39, 27 August 2020

Dirkjan: Created page with "The ''''Profitabilty Index''''' looks at the ratio of the NPV compared to the initial investment required: {Profitability Index} = \frac{NPV}{{Initi..."

Dirkjan: Created page with "The ''''Profitabilty Index''''' looks at the ratio of the NPV compared to the initial investment required: ${Profitability Index}$ = $\frac{NPV}$ {{Initi..."