Jun 16, 2025 · What Is the Profitability Index? The profitability index (PI) compares the expected cash flows from a project with its initial costs. The PI, known as the value investment ratio …

What is the Profitability Index? The Profitability Index (PI) measures the ratio between the present value of future cash flows and the initial investment. The index is a useful tool for ranking …

Profitability Index, as the name suggests, indicates how much profit a business can expect from investing in a project. It lets an entity establish a connection between what it spends and what …

Apr 9, 2024 · Profitability index (PI) is the ratio of present value of a project’s expected future cash flow and initial investment needed to undertake the project. It helps companies and investors …

Nov 15, 2024 · The profitability index can help you determine the costs and benefits of a potential project or investment. It’s calculated based on the ratio between the present value of future …

Mar 14, 2025 · The Profitability Index (PI), also known as Value Investment Ratio (VIR), expresses the relationship between the discounted inflows and invested amounts, or costs, for …

Apr 1, 2025 · The Profitability Index (PI) is a metric that measures the attractiveness of an investment project by comparing the present value of expected future cash flows to the initial …

Nov 21, 2025 · The profitability index measures the acceptability of a proposed capital investment. It does so by comparing the initial investment amount to the present value of the future cash …

Nov 28, 2025 · Discover the Profitability Index Model to learn how investors compare project attractiveness by weighing expected returns against the investment required. The profitability …

May 23, 2025 · The Profitability Index (PI), also referred to as the Value Investment Ratio or Profit Investment Ratio, is a financial ratio that helps investors evaluate a project’s attractiveness. It …