Profitability indexForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Profitability indexThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts February 10, 2021 at 12:00 am #609872 student999MemberTopics: 6Replies: 6☆HiFor example, a company invested 5m in machine and 1m in WC. NPV is 2m. How to then calculate Profitability index, do we include the WC investment or ?PI = NPV/Initial investment 2m/5 0.4ORPI = 2m/6m 0.33 February 10, 2021 at 9:42 am #609897 John MoffatKeymasterTopics: 57Replies: 54478☆☆☆☆☆Subject to anything else that might be written in the question, we do include the working capital.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In