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Profitability Index |
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Profitability index The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio. Profitability Index A ratio of whether and how much an investment will result in a profit. It is calculated by taking the net present value of expected future cash flows from an 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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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