Profitability Index Template Strictly Confidential
Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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Profitability Index
Initial Investment Required (Year 0) $ 1,500,000.00
Discount Rate 10.0%
Project A
Year 1 2 3 4
Discount Factor 0.91 0.83 0.75 0.68
Undiscounted Cash Flow 150,000 300,000 500,000 200,000
Present Value 136,364 247,934 375,657 136,603
Discounted Value 13,636 52,066 124,343 63,397
Present Value of Future Cash Flows $ 1,602,663.18
Profitability Index 1.07
This file is for educational purposes only. E&OE
5 6 7
0.62 0.56 0.51
600,000 500,000 100,000
372,553 282,237 51,316 Corporate Finance Institute®
https://corporatefinanceinstitute.com/
227,447 217,763 48,684
ses only. E&OE
