Project Ranking Flashcards
1
Q
What is the profitability index?
A
Determines project ranking by taking into account both NPV and the cost of each project
PI = NPV of project inflow / PV of project cost
BEC > Project Ranking > Flashcards
What is the profitability index?
Determines project ranking by taking into account both NPV and the cost of each project
PI = NPV of project inflow / PV of project cost