Скачать или смотреть 7. Profitability Index Explained: Discounted Cash Flow Method

🔹 Detailed Description

The Profitability Index (PI) is a powerful financial tool used in project appraisal and capital budgeting to evaluate investment opportunities. Based on the Discounted Cash Flow (DCF) method, PI measures the ratio between the present value of future cash inflows and the initial investment cost.

In this lecture, we break down:

What the Profitability Index means and why it’s important.

The formula and step-by-step calculation process.

How PI helps businesses rank projects when capital is limited.

The advantages and limitations of using PI in decision-making.

By the end, you’ll understand how to use the DCF method effectively to compare investment projects and maximize returns.

🔹
👉 “Watch this video to master the Profitability Index and learn how to make smarter investment and project selection decisions.”

🔹 Keywords

Profitability Index, Discounted Cash Flow, DCF Method, Capital Budgeting, Investment Appraisal, Project Evaluation, Financial Management, Capital Rationing, Investment Decision Making, NPV vs PI

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