Profitability Index - What Is It, Formula, Advantages, Disadvantages

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Que Es Profitability Index

Profitability Ratio | Definition, Formula, & Examples

SOLVED:What is the profitability index of a project that costs 10,000 and provides cash flows of 3,000 in Years 1 and 2 and 5,000 in Years 3 and 4 ? The discount rate is 10 percent.

#23 Profitability IndexProject C0 C1 C2 A -2,1002,000 1,200 B -2,100 1,4401,728 Calculate the profitability index for A B assuming 22% opportunity cost of capitalAccording to the profitability index rule, which project should you accept?