Profitability index Calculator

Written by:Abraham A.
Location:DCF Analysis

Finance.ThinkAndDone.com provides you online and windows calculators to calculate profitability index from a series of cash flows and the discount rate. Profitability index method is one of many DCF techniques used by financial analysts to evaluate capital projects. An organization usually accepts a projoect if the profitability index calculated from future cash flows is greater than 1.

Location: DCF Analysis

Profitability index Calculator

Developed by:Emma A.
Location:Financial Calculators
type in the authorization code in the box located below:

Results

Profitability Index: 1.54

Input Data

type in the reinvestment rate (WACC) aka discount rate:  %
type in net cash flows in the space below:

Instructions

To use this online calculator to calculate profitability index, you need to type in the series of net cash flows along with the discount rate usually the weighted average cost of capital. The instructions listed below provide guidance in using this online calculator

  • The cash flow series must be entered where each cash flow is separated by a space such as -50000 20000 20000 20000 20000 20000 -10000
  • A discount rate has to be entered such as 4
  • Clicking on the CALCUALTE button will show the profitability index of 1.54