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.

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 negative control diets (NC1, NC2 and NC3) presented higher values of profitability index when supplemented with enzyme complexes (EC1, EC2 and EC1 + EC2, respectively).
13 Index TABLE 4 Option 1: Lease Lease Contract Duration (years) 25 Annual Payment 2,000,000 USD Payment Collection Period Semi-Annual Payment Start After 6 months of contract signage Project Preparation Time 0 Project Cost 0 NPV Negative Profitability Index (PI) %0.
Phalippou and Zollo (2005) find an IRR of 16% and a profitability index of 1.
The profitability index is a ratio of the project's value to its initial investment.
The profitability index provides CEOs and CFOs with a snapshot of how each piece of real estate is performing in relationship to the entire organization.
Four popular methods for describing and analyzing the benefits of a project are net present value, the payback rule, internal rate of return, and profitability index.
Profitability Index - a data asset that targets prospects by household, not ZIP-4, ranking the most profitable customers for up-sell/cross-sell opportunities.
In order to obtain the variables used in the economic analysis, the following parameters were considered: gross revenue (GR), which is the amount earned as a function of the live weight versus broiler price; gross margin (GM), which represents the difference between the gross income and the feeding cost; relative gross margin (RGM), which is the quotient between the gross margin of the other treatments in relation to treatment 1 (basal diet); average profitability (AP), which represents the quotient between the gross margin and the feeding cost, indicating the profitability over the investment in feed; and relative profitability index (RPI), which represents the quotient between the average profitability of the various treatments and treatment 1.
ISLAMABAD -- Prime Minister Muhammad Nawaz Sharif said that his government is making arduous efforts to make Pakistan a highly conducive and attractive destination for foreign investments and that the steady appreciation in the Baseline Profitability Index (BPI) strongly signifies Pakistan as an attractive investment proposition, including a long term business association.
6]: Do companies in industrial town of Mashhad use Profitability index for assessment of long-term plans?
Similarly, we also sell clothing to Italy, Germany, Spain and England at higher prices but our profitability index has dropped to 69.