# 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)

\[
\mathrm{PI}=\frac{\mathrm{PVC}+\mathrm{NPV}}{\mathrm{PVC}}
\]

## 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.