7.18 : 収益性指数

The Profitability Index or PI is a financial metric used in capital budgeting to evaluate the attractiveness of investment projects.

It is calculated by dividing the present value of future cash inflows by the initial investment required for the project.

A PI greater than one indicates a potentially profitable investment, while a PI less than one suggests the project may not be worth pursuing.

One of the key strengths of PI is that it accounts for the time value of money, making it a more accurate measure than simple payback periods.

This metric allows for easy comparison of projects with different lifespans, facilitating better decision-making in resource allocation.

However, PI has limitations. It only considers the initial investment, ignoring any additional future investments that might be necessary for the project.

Furthermore, PI does not take into account the scale of the project, meaning it can favor smaller projects with higher PIs but lower dollar profits over larger projects with lower PIs but higher dollar profits.

In summary, while the Profitability Index is a useful tool for comparing investment opportunities, it should be used in conjunction with other metrics for a comprehensive analysis.