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Post by kelin on Aug 2, 2013 23:04:51 GMT -5
A profitability index (PI), alternatively referred to as a profit investment ratio or a value investment ratio, is a method for discerning the relationship between the costs and benefits of investing in a possible project. Aside from individual cases, many companies and investors use the profitability index as a way of ranking a group of potential projects. It calculates the cost/benefit ratio of the present value of a project’s future cash flow over the price of the project’s initial investment. The Cube Investment Project in Bolton
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