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.