Calculate profitability index for investment analysis.
Calculate profitability index for investment analysis and project evaluation.
✓ This project is profitable and should be accepted.
The profitability index of indicates that for every $1 invested, you can expect to receive in present value terms.
⚠ This project breaks even.
The profitability index of 1.00 indicates that the project exactly covers its cost of capital.
✗ This project is not profitable and should be rejected.
The profitability index of indicates that the present value of cash flows is less than the initial investment.
| Year | Cash Flow | Discount Factor | Present Value |
|---|---|---|---|
| 0 | 1.000 | ||
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