Probability Index Question

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This topic contains 2 replies, has 3 voices, and was last updated by avatar sunflowerdragon 3 years, 10 months ago. This post has been viewed 57 times

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    jrow
    Participant
    • Topics: 27
    • Replies: 15

    Hey, can anyone tell me the probablity index can only be used for projects that are divisible?
    Thanks,

    j


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    latif baako alhassan
    Participant
    • Topics: 1
    • Replies: 9

    Are you refering to profitability index or probability index? please specify


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    sunflowerdragon
    Participant
    • Topics: 4
    • Replies: 7

    Profitability Index yes used for divisible projects only. its calculated as NPV divided by Initial Investment (you get NPV per $ invested) .You will use the PI to rank the projects.

    hope this ans yr qns

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