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[see more articles on this category] The profitability index is an alternative way of stating the net present value (NPV). It takes the present value of the cash-flows and divides them by the initial capital outlay. i.e.:Profitability Index (PI) =Present value of cash flows / Initial cash outflow Interpretation:If the PI is [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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