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 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...
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...
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...
A profitability index is a method for discerning the relationship between the costs and benefits of investing in a project. If a...
What is the profitability index for aninvestment with the following cash flows given a 14.5 percent required return? A. 0.94 B. 0.98 C. 1.02 D. 1.06 如何将EXCEL生成题库手机刷题 > 下载刷刷题APP,拍照搜索答疑 > 手机使用 分享 反馈 收藏 举报 参考答案: C 复制 纠错 举一反三 以下不...
What is revenue? Explain. What are spillover costs? What is the formula for net income? What is one advantage of a business franchise? What is revenue less cost of sales? What is considered a good price to earnings ratio? What is profitability index?
The formula for calculating net asset profit is: Net asset interest rate = (net profit, average assets total) * 100% The higher the index, the higher the utilization efficiency of assets. This shows that enterprises have achieved good results in increasing revenue and reducing expenditure and sa...
A key performance metric for the hospitality industry is a property's revenue per available room, or RevPAR.
while it’s usually a positive sign if a company is profitable, it’s not necessarily bad if a company’s profitability is negative. In some cases, a company can still have significant sales, but may be using its sales to spend money on initiatives or costs that it believes will fuel fu...