Asked by
melanie rulos
on Oct 23, 2024
Verified
The profitability index is a tool for ranking investment proposals.
Profitability Index
A financial tool used to determine the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.
- Learn to scrutinize and prioritize investment projects based on various financial parameters, including net present value (NPV), internal rate of return (IRR), and profitability indexes.
Verified Answer
LK
Learning Objectives
- Learn to scrutinize and prioritize investment projects based on various financial parameters, including net present value (NPV), internal rate of return (IRR), and profitability indexes.
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