Exploring the concept of capital rationing, its types, implications, and strategies for managers to maximize net present value (NPV).
Profitability Index (PI) is a method used in discounted cash flow for ranking a range of projects under consideration. It helps determine the value of projects by comparing their profitability, facilitating optimal decision-making.
A comprehensive explanation of the Profitability Index (PI), including its definition, key components, benefits, formula, and practical examples.
