Profitability Index

Anyone know how to compute PI with a calculator? Is it even possible after you have the NPV? Thanks in advance

1 + (NPV/initial investment)

gumbiegirl Wrote: ------------------------------------------------------- > Anyone know how to compute PI with a calculator? > Is it even possible after you have the NPV? > Thanks in advance it is PV of CF/initial investment…you dont need to get fancy with it, if PI > 1.0, go with project boom

yeah if your first cash out flow is -100 and your NPV is 14.85… add 1 to the NPV/ first cash outlay your Prof index is 1.15

which book, what page is this on? want to review this…Thank you.

SkipE99 Wrote: ------------------------------------------------------- > yeah > > if your first cash out flow is -100 and your NPV > is 14.85… > > > add 1 to the NPV/ first cash outlay > > your Prof index is 1.15 that is one way to do it, either this way or simply PV of CF/Inish invt boom!

lol

Like your style, nice and straightforward!!! on mock exam number 2

That question had me scratching my head. Glad to see I’m not the only one.