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Profitability Index

   Also found in: Medical, Acronyms, Wikipedia 0.01 sec.
Profitability index
The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio.

Cost-Benefit Ratio
A ratio of whether or not and how much profit will result from an investment. It is calculated by taking the net present value of expected future cash flows from the investment and dividing by the investment's original cost. A ratio above one indicates that the investment will be profitable while a ratio below one means that it will not. A cost-benefit ratio is also called a profitability index.


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The seminars will also examine allocating company resources according to a prioritised list of projects as well as identifying project evaluation and analysis techniques including the discounted payback method, internal rate of return, net present value and profitability index.
The seminars will also examine allocating company resources according to a prioritised list of projects as well as identifying project evaluation and analysis techniques including the discounted payback method, internal rate of return, net present value and profitability index.
Equally noteworthy is the performance of its sires in terms of the Canadian Proofs' Lifetime Profitability Index (LPI), claiming four out of the top five rankings.
 
 
 
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