TI BA II plus|Find profitability index

With this tutorial on Texas Instruments BA II Plus, you will learn how to find profitability index for an annuity with constant cash flows.

Profitability index Example

We will illustrate how you can use TI BA II Plus to find profitability index with an annuity that has constant payment. Let's assume McDonalds Corporation purchased a machinery for 52,125. It will save the company $12,000 annually for the next 8 years. The company's cost of capital is 12%. How do we find the profitability index with TI BA II Plus

Profitability index step by step using TI BA II Plus

To Press Display
Set all variables to default 2nd reset enter RST 0.00
Enter number of periods 8 N N= 8.00
Enter interest rate per payment period 12 I/Y I/Y= 12.00
Enter Payment 12000 +/- PMT PMT= -12000.00
Compute present value (ordinary annuity) CPT PV PV= 59611.68
Divide by initial cash outlay ÷ 52125 = PI= 1.14

This web page used to be a host to series of online PI calculators that ranged from the ones that found profitability index for a single investment using a bunch of options for the cash transactions, the other allowed for non-periodic cash flows given a set of date still others allowed for schedule of discount rates to be applied at which each investment resulted in same PI.

However those days of using free online PI calculators are a thing of past just as the Feds tapering put an end to flow and access to cheap and easy money.

From now on forwards we at SoftMart will only offer pay as you wish to use the Windows financial calculator that run on Windows 7, 8, 9 and 10.

The choice is given in the download cart that follows that will allow you to recieve the gift packed Incremental PI calculator from us at SoftMart.

Whatever business you are in, we hope its a profitable one

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