The profitability index is an index that attempts to recognise the connection between the costs and advantages of a stated project.
If the profitability index is greater than 1.0, then the future value of the project is more than the initial value.
If the profitability index is lesser than 1.0, then the future value of the project is less than the initial value that is, the project should be avoided.
Please note The results provided by this calculator are intended for illustrative purposes only. This calculator is not intended to offer any tax, legal or financial advice and does not assure the availability of your eligibility for any specific product. For any practical use please consult your Financial Advisor.