What is the meaning of Profitability index (PI)?

Profitability index (PI) is the ratio of the present value of a project's future net cash flows to the project's initial cash outflow.

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APABarry Goldsmith. (2010). Profitability index (PI). Retrieved September 21, 2026, from http://smartdefine.org/profitability_index_(pi)/definitions/1161299
ChicagoBarry Goldsmith. 2010. "Profitability index (PI)" http://smartdefine.org/profitability_index_(pi)/definitions/1161299 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, Profitability index (PI), Smart Define, viewed 21 September, 2026, <http://smartdefine.org/profitability_index_(pi)/definitions/1161299>.
MLABarry Goldsmith. "Profitability index (PI)" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/profitability_index_(pi)/definitions/1161299>