Dear sir,
When calculating Profitability index both these ways are acceptable right?
1) NPV/ initial investment
2)(NPV-initial investment)/intial investment
Please do correct me if i'm wrong.
thankyou
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profitability index
7y ago#1What you have written is correct except that you should have written PV and not NPV in both cases.
(PV - initial investment = NPV :-) )
thankyou!
7y ago#3You are welcome :-)
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