Difference between revisions of "Profitability Index"
Jump to navigation
Jump to search
(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...") |
|
| (One intermediate revision by the same user not shown) | |
(No difference)
| |
Latest revision as of 19:25, 27 August 2020
The 'Profitabilty Index looks at the ratio of the NPV compared to the initial investment required:
= Failed to parse (syntax error): {\displaystyle \frac{NPV}} Template:Initial\ Investment
Compare the following projects:
| Project | NPV at 10% | |||
|---|---|---|---|---|
| A | ||||
| 21 | ||||
| B | ||||
| 16 | ||||
| C | ||||
| 12 |
The profitability index would be:
| Project | Investment | NPV | Profitability Index |
|---|---|---|---|
| A | 10 | 21 | 2.1 |
| B | 5 | 16 | 3.2 |
| C | 5 | 12 | 2.4 |
