Probability Index Question

This topic has 2 replies, 3 voices, and was last updated 15 years ago by sunflowerdragon.

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November 15, 2010 at 11:13 pm #46010
jrow
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Hey, can anyone tell me the probablity index can only be used for projects that are divisible?
Thanks,

j
November 18, 2010 at 2:31 pm #70739
latif baako alhassan
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Are you refering to profitability index or probability index? please specify
December 6, 2010 at 3:08 pm #70740
sunflowerdragon
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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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