Profitability Index Explained

EPM · Beginner ·💰 FinTech & AI for Finance Professionals ·2y ago

About this lesson

In this video, we explain how you can use the profitability index as part of capital budgeting to help you make better investment decisions. Running order: - Introduction 00:00 - What is the profitability index 00:24 - What is capital budgeting 01:00 - Why use the profitability index? 01:34 - How to use the profitability index 02:56 - Example 03:37 - Advantages & disadvantages 08:54 - Our Take 10:24 Here is the link to the New Present Value video mentioned: https://hi.switchy.io/AETu The companion article to this video can be found here: https://hi.switchy.io/MMuf Subscribe to Our Channel: http://bit.ly/2k9j9DJ

Original Description

In this video, we explain how you can use the profitability index as part of capital budgeting to help you make better investment decisions. Running order: - Introduction 00:00 - What is the profitability index 00:24 - What is capital budgeting 01:00 - Why use the profitability index? 01:34 - How to use the profitability index 02:56 - Example 03:37 - Advantages & disadvantages 08:54 - Our Take 10:24 Here is the link to the New Present Value video mentioned: https://hi.switchy.io/AETu The companion article to this video can be found here: https://hi.switchy.io/MMuf Subscribe to Our Channel: http://bit.ly/2k9j9DJ

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