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 23, 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 23, 2026).
HarvardBarry Goldsmith 2010, profitability index (pi), Smart Define, viewed 23 September, 2026, <http://smartdefine.org/profitability_index_(pi)/definitions/1161299>.
MLABarry Goldsmith. "profitability index (pi)" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/profitability_index_(pi)/definitions/1161299>