Profitability index

Input(s)

NPV: Net Present Value of investment (currency unit)

PVC: Present Value of Capital investments (currency unit)

Output(s)

PI: Profitability Index (dimensionless)

Formula(s)

PI=PVC+NPVPVC\mathrm{PI}=\frac{\mathrm{PVC}+\mathrm{NPV}}{\mathrm{PVC}}

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 6, Page: 329.


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