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What is project profitability?

Updated: 9/18/2023
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Q: What is project profitability?
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For the NPV criteria a project is acceptable if the NPV is while for the profitability index a project is acceptable if the profitability index is?

less than zero, greater than the requred return


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When hard capital rationing exist project may be accurately evaluated by use of what?

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The Location Of The Plant Can Have A Crucial Effect On The Profitability Of A Project, And The Scope For Future Expansion.


How gestation period of ongoing project affect project financing decision?

The gestation period of an ongoing project is the length of time it takes said project to start showing results or profitability. This affects financing decisions as to whether or not it would be profitable to undertake the project in the first place.


How do you compute the profitability index of a capital-budgeting proposal?

Dividing the present value of the annual after-tax cash flows by the cost of the project


What is a profitability index?

Profitability index is the "rolling forward" of indices of profitability. For example, a company has a turnover of


What is meant by optimization in project management?

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What is the difference between feasibility and viability?

Assuming that the question relates to an investment appraisal, feasibility looks mainly at the profitability of the project, and viability looks at the likelihood of survival.


How is the profitability of a scheme determined?

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