Capital Budgeting: Definitions, Steps & Techniques
As the profitability index considers projects with ratios over 1.0 as candidates to move forward, so far, this opportunity looks promising. The profitability index is calculated by dividing the present value of future cash flows by the initial https://intuit-payroll.org/ investment. A PI greater than 1 indicates that the NPV is positive while a PI of […]
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