Profitability Index is the ratio of the present value of future cash flows to the initial investment. It is used to rank projects by the amount of value created per unit of investment.
Some other related topics you might be interested to explore are NPV, IRR, Payback Period, and Average Accounting Rate of Return.
This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as a Banker, Investment Professional, Corporate Finance Practitioner, or Portfolio Manager.
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Profitability Index is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum.