Profitability Index
Equation and meaning
\[PI = ( ( ( PV_of_future_cash_flows ) ) / ( ( CFO ) ) )\]
Profitability Index Where: PV is the Present value NPV is the Net Present value CF is the Cash flow CFO is the Cash flow from operations
Variables in this formula
CFO — CfoEnter this value unless it is the selected unknown.
PI — PiEnter this value unless it is the selected unknown.
PV_of_future_cash_flows — Pv Of Future Cash FlowsEnter this value unless it is the selected unknown.