Investors and financial analysts often rely on the profitability index (PI) to determine whether the benefits of an investment opportunity outweigh its costs. Essentially, the PI compares projected cash flows to the initial investment required. A PI grea
value of possible investments If can never be entirely predicted. If you are considering investing in a new business, in a product idea, or even a stock that you know little about, asking a few different analysts for their thoughts on it's profitability index is likely to be a good idea...
The profitability index helps rank projects because it lets investors quantify the value created per each investment unit. A profitability index of 1.0 is the lowest acceptable measure on the index. Mathematically, a value lower than one means the project's present value (PV) is less than thein...
The profitability index is a variation of which of the following capital budgeting models? a. Discounted payback. b. Net present value. c. Economic value-added. d. Internal rate of return.相关知识点: 试题来源: 解析 B 略 反馈 收藏
Answer to: What is the profitability index of a project that has an initial cash outflow of $600, and inflow of for the nears and a cost of capital...
Answer to: What is the profitability index of the project that has an initial cash outflow of $250 for the next 3 years and a cost of capital of 10...
Profitability Index (PI): PI assesses the present value of future cash benefits relative to the initial cash outlay. Projects with a PI greater than 1.0 are accepted. PI is a useful tool for ranking projects. PI = PV cash inflows/Initial cash outlay A Get 100% Hike! Master Most in Deman...
Finally, a fourth group of mostly newer entrants has, to date, successfully focused on growth and market share rather than profitability; however, if they do not pivot to profit, more funding will probably be harder to find. With a w...
What is profitability index? What is net income vs. gross income? What are operating expenses? What is marginal benefit? Who gets the profits from a sole proprietorship? What is organic revenue? What does a high price-to-earnings ratio mean?
But over a shorter period, value may outperform at a lower percentage. Johnson cites the same research showing that in annual periods value outperformed just 62 percent of the time. But that’s not to say that value stocks as a whole will be winners when the market turns. It’s important...