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Please feel at home to download tadXL for FREE, currently valued at US$119
 
Whether you require analyzing a single investment to find investor's ROI or are eager to evaluate a whole portfolio of investments, tadXL will deliver the results. And how about analyzing a "portfolio of portfolios" or even a portfolio of "portfolios of portfolios"
 
tadXL v2.5 allows one dimensional financial analysis, the next many iterations of tadXL will allow for N-dimensional financial analysis starting with 2 dimensional TVM equation in v3.0 followed by 3 dimensional time value of money equation in v4.0 and moving upwards
 
Free 32-bit tadXL v2.5 full versionFREEDownload Now
Free 64-bit tadXL v2.5 full versionFREEDownload Now
 
In near future you will be get to download newer versions of tadXL v3.0, v4.0, v5.0, v6.0, v7.0, v8.0, v9.0 and v10.0
 
Don't be surprised if you find out that Microsoft has copied ideas from tadXL to offer similar financial functions in its upcoming Excel 2015. And you thought Microsoft would respect others copy protected work, yet that is not the case this time with that software Giant pirate
 
Profitability index using TI BA II plus

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

Finding profitability index in Excel

Up until Excel 2013, there weren't any financial functions in Excel to find the profitability index or any of the other financial measures of return on investment - ROI. In 2012, tadXL was released to the software market that offered a large number of financial functions to analyze investments. A number of these different functions calculate profitability index of an investment depending on number of attributes that are known about the investment. The trivial one of these financial function find the financial PI with just the cash flows and the discount rate. The more complicated of the profitability index calculations allow for use of different compounding frequencies, the different lengths of time periods for the investment and the various discounting conventions. Not sure what Microsoft is planning for its upcoming Excel 2015 or 2016 yet if it is found that the next version Excel includes a new set of financial functions than more than likely these will be based on the tadXL series of financial functions. I suppose that rightfull owner of original work takes the back bench whereas those who cheat on the exam get the income from work that others started.

Using tadXL functions such as tadPI, tadPISchedule, tadXPI and tadXPISchedule finding profitability index in Excel 2007, 2010 and 2013 becomes really easy. Let us now briefly look at each of these three financial functions in tadXL to find financial PI using Excel:

=tadPI( rate, cash_flows, type, compounding, period, distribution )
=tadPISchedule( rates, cash_flows, type, compounding, period, distribution )
=tadXPI( rate, cash_flows, dates, type, compounding, period, distribution )
=tadPISchedule( rates, cash_flows, dates, type, compounding, period, distribution )