The formula for the profitability index is: PI = Present Value of Future Cash Flows / Initial Investment. PI can offer you several advantages when evaluating investment opportunities. Here are ...
It’s calculated using the following formula: Profitability Index = Present Value of Future Cash Flows ÷ Initial Investment A PI greater than one indicates that the project’s PV exceeds its ...
Gross Profit Percentage Ratio works out the amount of profit from the buying and selling of goods before all other expenses are deducted.