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One of the efficiency metrics of Financial Investment defined as:
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\mbox{PI} = 1 + \frac{\mbox{NPV}}{\mbox{I}_0} |
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Weighing the Project's risks against PI to include to or exclude from Investment Package is based on the Corporate Investment Policy.
The model
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If this is not the case and the future cash flows include additional investments (for example additional paid in capital and/or capex) then
See also
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Economics / Investment / Financial Investment
[ Net Present Value (NPV) ][ Present Value Index (PVI) ]