Question

what is Profitability Index?

Answer 1

hello Frnd... ^_^


Profitability index is a financial tool which tells us whether an investment should be accepted or rejected. It uses the time value concept of money and is calculated by the following formula.

The accept-reject decision is made as follows:

If PI is greater than 1, accept the investment. If PI is less than 1, reject the investment and if PI = 1, then indifferent (may accept or reject the decision)




hope its help U...my frnd.....$$

Answer 2

it say you it acpted or rejected it on from index