<P> Profitability index ( PI ) , also known as profit investment ratio ( PIR ) and value investment ratio ( VIR ) , is the ratio of payoff to investment of a proposed project . It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment . </P>
<P> Profitability index ( PI ) , also known as profit investment ratio ( PIR ) and value investment ratio ( VIR ) , is the ratio of payoff to investment of a proposed project . It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment . </P>
the profitability index of an investment project is the ratio of the
the profitability index of an investment project is the ratio of the
payoff to investment
payoff to investment