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Disadvantages of Profitability Index are:-
Only used for divisible projects
strategic value of projects are not considered.( only figures are dealt with not long term not short term
limited use when protect have differing cash flow pattern. ( only limited to investment with major cash at the beginning)
absolute NPV vale is ignored, smaller projects receive more favourable treatment ( the equation treats all project as equally important.
R.ogunleye university of Herfordshire (UK)
Wiki User
∙ 14y ago
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The net present value and profitability index methods to give consistent accept-reject decisions?
Yes, The PI and NPV always give the same decisions to accept or reject the projects. The Project's PI will be greater than 1.00 if the NPV is positive and PI will be less than 1.00 if the NPV is negative
What are the differences between profitability index and net present value?
The NPV and PI both consider the time value of money and result in the same accept or reject decision when considering an independent project. The main difference between the two is that the PI may be useful in determining which projects to accept if funds are limited; however, the PI may lead to incorrect decisions when considering mutually exclusive investments
If the diameter is 8 what is the circumference?
The ratio of a circle's circumference to its diameter is Pi, which is 3.14159. Hence, multiply the diameter by Pi to find a circle's circumference, or divide a circumference by Pi to find its diameter. 8 times pi = 25.13274123.
What is the formula for expected value of perfect information?
Evopi = evw/pi – evw/o pi
If the diameter is 3.5inches what is the circumfence?
10.996 inches. That is rounded 11 inches. Diameter dtimes pi gives the circumference C. C = d times pi pi = 3.14159
What are the advantages and disadvantages of Pcontroller?
Advantage : PI controller has zero steady state error. Disadvantage : PI controller has maximum overshoot and high settling time
The net present value and profitability index methods to give consistent accept-reject decisions?
Yes, The PI and NPV always give the same decisions to accept or reject the projects. The Project's PI will be greater than 1.00 if the NPV is positive and PI will be less than 1.00 if the NPV is negative
What is PI index?
What are the differences between profitability index and net present value?
The NPV and PI both consider the time value of money and result in the same accept or reject decision when considering an independent project. The main difference between the two is that the PI may be useful in determining which projects to accept if funds are limited; however, the PI may lead to incorrect decisions when considering mutually exclusive investments
How do you interpret the predictive index chart?
Interpretation of the Predictive Index requires a trained PI analyst. You can find more information at www.predictiveresult.com.
What is the PI value of power transformer?
PI stands for polarization index. We need to find IR value(IR1) for 1min and again find the IR value(IR2) for 10min. PI=IR2/IR1
How is a wave changed by reflection?
When a wave traversing in a medium of less refractive index gets reflected at a medium of greater refractive index then wave undergoes a phase change of pi radians. But if the same reflection takes place as the wave traverses from a medium of greater refractive index to that of less refractive index, then no such phase change. The later reflection is known as total internal reflection. So as light traversing in air gets reflected at glass then phase change of pi radians occurs.
How do you integrate periodic functions?
Same as any other function - but in the case of a definite integral, you can take advantage of the periodicity. For example, assuming that a certain function has a period of pi, and the value of the definite integral from zero to pi is 2, then the integral from zero to 2 x pi is 4.
How can the primacy index of a countrys population be calculated?
The primacy index of a country's population can be calculated by dividing the population of the largest city by the total population of the country and multiplying by 100. This index is used to measure the level of urban concentration within a country. A high primacy index indicates that the largest city has a significantly larger population compared to other cities in the country, while a low primacy index suggests a more dispersed population distribution.
What are the advantages and disadvantages of phase modulation?
Advantage - 1. Phase modulation & demodulation is easy compared to Frequency modulation. 2. Phase modulator is used in determining velocity of moving target by extracting Doppler information. Doppler information needs stable carrier which is possible in phase modulation but not in frequency modulation. Disadvantage - 1. Phase ambiguity comes if we exceed its modulation index pi radian(180 degree). 2. we need frequency multiplier to increase phase modulation index. Visit my website http://harshit.org
What does pi stand for on technogym fitness equipment?
From the technogym website: Performance index The Performance Index (Pi) was invented by Technogym to give a concise and easily comparable assessment of performance in a workout.A heart rate monitor must be worn for a minimum of 3 consecutive minutes to obtain a result. The index is based on a rating scale ranging from 0 to 99. The higher the rating, the greater your aerobic capacity. If your performance index increases, this means that you are exercising more intensely without increasing your heart rate. The criteria used to calculate the performance index makes it possible compare tests taken by people of different ages. The results can only be compared where the exercise duration and intensity are constant.
Free predictive index test?
Predictive Index® is an assessment tool used by businesses for effective hiring and leadership development. It is not available for free online. Companies interested in trying PI® can ask their local representative for a demonstration. FMI: See PredictiveResults.com or contact PI Worldwide.
