Profitability index calculation in excel
These include: Payback, Discounted Payback, Internal Rate of Return (IRR), Profitability Index (PI), and Net. Present Value can be used to determine a risk- adjusted discount rate or to calculate certainty equivalent cash flows. Each of the And so to calculate the profitability index, I simply divide the NPV by minus the initial investment, because it's currently a negative number. So I'll select the NPV and divide by minus cell C4. And then I'll copy and paste this formula for project B .