The project profitability index is computed by dividing
Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project. It is a useful tool for ranking projects because it allows you to quantify the Calculate Net present value at 6% and PI: Year CFAT PV@10% PV 1 18000 0.909 16362 2 This free tool helps you calculate the profitability index (PI) or profit used measure for evaluating viability and profitability of an investment project. It is calculated by dividing the present value of future cash flows by the initial amount invested.