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Management of special projects (compendium of lecture NUPSU)

2.1.7. Index of profitability (Profitability Index - PI)

Приб приб ндекс ндекс - - - - - - Profitability Index (PI) є in relation to discount vigods to discount vitrates. The basic formula is rosarahunka maє such a viglyad:

The criterion for the design of the project is that you want to choose all the necessary designs with PI codes that are larger than the one. Yakshcho РІ> 1, the project of efficiency, yakshko РІ < 1 - not effective.

When zosuvannі tsogo criterion slіd pam'yatati, scho koofіtsієnt PI maє so nedoliki:

- You can give the wrong ranking for the coup to navigate the next projects;

- not suitable for corridor when vibro mutual projects;

- I will not show the actual value of the net vigods.

Rіsno povyazy z NPV. As a result , NPV is positive, then th RI> 1, and navpaki.