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Profitability Index NPV/Initial Investment Can you please give me a breakdown how to figure out NPV/Intitial investment....

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Finance

Profitability Index NPV/Initial Investment

Can you please give me a breakdown how to figure outNPV/Intitial investment. If you cab please just show me an examplehow to figure it out.

On an sheet, just want an example and a breakdown on how youcame up with it. Thanks

Answer & Explanation Solved by verified expert
3.9 Ratings (689 Votes)
Profitability Index is the ratio of the present value of future cash flows of the project to the initial investments in the project This index helps in cost benefit analysis of investment projects and helps them rank in order of the best return on    See Answer
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Profitability Index NPV/Initial InvestmentCan you please give me a breakdown how to figure outNPV/Intitial investment. If you cab please just show me an examplehow to figure it out.On an sheet, just want an example and a breakdown on how youcame up with it. Thanks

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