For a project that has an initial cash outflow followed by cash inflows, the profitability index ...

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For a project that has an initial cash outflow followed by cash inflows, the profitability index ...

For a project that has an initial cash outflow followed by cash inflows, the profitability index (PI) is equal to the present value of cash inflows divided by the cost of capital.

Textbook

Principles of Managerial Finance

Edition: 14^th

Authors: Gitman, Zutter

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mantparn Author

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6 years ago

Thanks again for helping me in my management class!

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