Profitability Index
An evaluation tool that measures the ratio of present value of future cash flows after initial investment divided by the amount initial investment. This measures the amount of return possible from a project. This is valuable for investors that assess the cost and benefits of a proposed project. As the profitability index increases, the value of the project also increases. A profitability index equal to 1 is the lowest accepted value.
admin :: Jan.27.2008 :: Gas Credit Cards :: No Comments »
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