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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
What else can I help you with?
What is a profitability index?
Profitability index is the "rolling forward" of indices of profitability. For example, a company has a turnover of
What are the differences between fnilx and voo?
The main differences between FNILX and VOO are that FNILX is a mutual fund that tracks the performance of the Russell 1000 index, while VOO is an exchange-traded fund (ETF) that tracks the performance of the SP 500 index. Additionally, FNILX has a slightly lower expense ratio compared to VOO.
What are the key differences between QQQ and IVV?
The key differences between QQQ and IVV are the underlying indexes they track. QQQ follows the Nasdaq-100 index, which includes mainly technology stocks, while IVV tracks the SP 500 index, representing a broader range of large-cap U.S. companies across various sectors.
What are the key differences between SPX and ES?
The key differences between SPX and ES are that SPX is the symbol for the SP 500 index, which represents 500 large-cap U.S. companies, while ES is the symbol for E-mini SP 500 futures contract, which is a derivative financial instrument based on the SP 500 index. SPX is an index that tracks the performance of the underlying stocks, while ES is a futures contract that allows investors to speculate on the future price movements of the index.
What are the key differences between IVV and QQQ?
The key differences between IVV and QQQ are the underlying indexes they track. IVV tracks the SP 500 index, which includes 500 large-cap U.S. stocks, while QQQ tracks the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
What is a profitability index?
Profitability index is the "rolling forward" of indices of profitability. For example, a company has a turnover of
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
How does one create a profitability index?
Profitability indexes are not hard to come by. To create one you must go online to a profitability website in which they have step by step instructions according to the index you need.
Payback period versus discounted payback period versus net present value versus profitability index?
discounted payback period
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
Why is profitability index considered more in capital budgeting appraisal than net present value and internal rate of return?
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An index of regional disparity would be useful in examining?
Economic differences between different regions of a country
What is index ratio?
An index ratio typically refers to a comparison between two index values, often highlighting the relative performance or change between them. It is calculated by dividing one index value by the other and can be used to assess trends, differences, or shifts in data sets represented by the indices.
When hard capital rationing exist project may be accurately evaluated by use of what?
Profitability Index
What are the differences between fnilx and voo?
The main differences between FNILX and VOO are that FNILX is a mutual fund that tracks the performance of the Russell 1000 index, while VOO is an exchange-traded fund (ETF) that tracks the performance of the SP 500 index. Additionally, FNILX has a slightly lower expense ratio compared to VOO.
What has the author Ray I Reul written?
Ray I. Reul has written: 'Profitability index for investments' -- subject(s): Capital investments
What are the key differences between QQQ and IVV?
The key differences between QQQ and IVV are the underlying indexes they track. QQQ follows the Nasdaq-100 index, which includes mainly technology stocks, while IVV tracks the SP 500 index, representing a broader range of large-cap U.S. companies across various sectors.
