Profitability Index[PI]

Profitability Index[PI]　盈利能力指标　

A profit investment ratio or a value investment ratio，is a method for discerning the relationship between the costs and benefits of investing in a possible project.It calculates the cost/benefit ratio of the present value（PV）of a project’s future cash flow over the price of the project’s initial investment.This formula is commonly written as PI=PV of future cash flows÷initial investment.The figure this formula yields helps investors decide on whether or not a project is financially attractive enough to pursue.