CHAPTER 2 - Financial Ratio Analysis; CHAPTER 3 - Time Value of Money; CHAPTER 4 - Bond Valuation; CHAPTER 5 - Cost-Volume-Profit (CVP) Analysis; Profitability Index Calculator. By Yuriy Smirnov Ph.D. Discount rate, % Initial Cost: Number of periods Present Value . Profitability Index . SUPPORT. Contact Us; Sitemap; Relevance and Use. The concept of profitability index formula is very important from the point of view of project finance.It is a handy tool to use when one needs to decide whether to invest in a project or not. The index can be used for ranking project investment in terms of value created per unit of investment. Financial ↺ Financial Profitability Index (PI) calculator provides for the same. We have simplified the entire process of calculating Profitability Index (PI). All you have to do is provide the input values and hit calculate. You will get the answer for Profitability Index (PI) without getting into the complex process of actually Simple mortgage calculator which is used to calculate Profitability Index (PI) based on present value and initial investment. Code to add this calci to your website Just copy and paste the below code to your webpage where you want to display this calculator. Show your love for us by sharing our contents. One Comment on Profitability index calculator. TERri » Net Present Value (NPV) and Profitability Index (PI) Calculator. Initial Data. Net Present Value (NPV) of a time series of cash flows (incoming and outgoing), is defined as the sum of the present values of the individual cash flows. Discount Rate % See also: Internal Rate of Return (IRR)
Explanation: Profitability index is actually a modification of the net present value method. While present value is an absolute measure (i.e. it gives as the total dollar figure for a project), the profibality index is a relative measure (i.e. it gives as the figure as a ratio).
A determining factor in calculating the profitability index is the present value of future cash flows the investment is expected to return. The present value formula measures the current value of a future amount to be received, given a specific time period and interest rate. Profit & Loss; Profitability Index Calculator is an online tool which allows any Business or Company to calculate the amount of value created per unit of investment of a business enterprise and will assist you to take the right decisions on ranking projects. Online Calculators > Financial Calculators > Profitability Index Calculator Profitability Index Calculator. Profitability index calculator to calculate the profitability of an investment or project profitability index. The Profitability Index Formula is given below on how to calculate profitability index. Profitability Index = ($17.49 + $50 million) / $50 million. Profitability Index = $1.35 Explanation of Profitability Index Formula. Profitability Index is a measure used by firms to determine a relationship between costs and benefits for doing a proposed project. Relevance and Use. The concept of profitability index formula is very important from the point of view of project finance.It is a handy tool to use when one needs to decide whether to invest in a project or not. The index can be used for ranking project investment in terms of value created per unit of investment.
This free tool helps you calculate the profitability index (PI) or profit investment ratio (PIR) based on the amount of your investment, the discount rate, and the number of years GoodCalculators.com A collection of really good online calculators for use in every day domestic and commercial use!
See Also: Profitability Index Method. Profitability Index Method Formula. Use the following formula where PV = the present value of the future cash flows in question.. Profitability Index = (PV of future cash flows) ÷ Initial investment. Or = (NPV + Initial investment) ÷ Initial Investment: As one would expect, the NPV stands for the Net Present Value of the initial investment.
Profit & Loss; Profitability Index Calculator is an online tool which allows any Business or Company to calculate the amount of value created per unit of investment of a business enterprise and will assist you to take the right decisions on ranking projects.
How to use the Financial App with a TI-89 Titanium. return (Irr) , Investment Index Some people prefer to use the profitability index (also known as the more complex because of the arithmetic calculations involved, the calculator Financial and Cash Flow Analysis. Methods (E) Profitability Index Payback: • This can be illustrated by calculating the cumulative cash flows, as follows:. Calculator Solution: Note: Intermediate answers are shown below as rounded, The equation for the profitability index at a required return of 10 percent is: PI Mar 21, 2013 (2) Profitability Index (PI) does not measure profit; The typical finance course/ professor presentation states that the NPV is the Price (CF0) is not in the GPV equation, even if a calculator requires it to be inputted, and. This free tool helps you calculate the profitability index (PI) or profit investment ratio (PIR) based on the amount of your investment, the discount rate, and the number of years GoodCalculators.com A collection of really good online calculators for use in every day domestic and commercial use!
Calculator Solution: Note: Intermediate answers are shown below as rounded, The equation for the profitability index at a required return of 10 percent is: PI
Online Calculators > Financial Calculators > Profitability Index Calculator Profitability Index Calculator. Profitability index calculator to calculate the profitability of an investment or project profitability index. The Profitability Index Formula is given below on how to calculate profitability index. Profitability Index = ($17.49 + $50 million) / $50 million. Profitability Index = $1.35 Explanation of Profitability Index Formula. Profitability Index is a measure used by firms to determine a relationship between costs and benefits for doing a proposed project.