Skip to main content

learn.howToCalculate

learn.whatIsHeading

Profitability Index (PI) = Present Value of Future Cash Flows / Initial Investment. PI > 1 means positive NPV, useful for capital rationing.

Guida passo passo

  1. 1Calculate PV of future cash flows
  2. 2Divide by initial investment
  3. 3PI > 1 accept, < 1 reject

Esempi risolti

Ingresso
PV future CF $120k, initial invest $100k
Risultato
PI = 1.20 (good project, create $0.20 per dollar invested)
Useful when capital limited

Errori comuni da evitare

  • Confusing PI with ROI
  • Not accounting for scale differences

Domande frequenti

When is PI better than NPV?

With capital rationing constraints; allows ranking by efficiency.

Pronto per calcolare? Prova la calcolatrice gratuita di Profitability Index

Provalo tu stesso →

Impostazioni

PrivacyTerminiInfo© 2026 PrimeCalcPro