<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <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> The ratio is calculated as follows: </P>

The profitability index of an investment project is the ratio of the