profitability_index
Calculate profitability index to evaluate investment projects by comparing present value of future cash flows to initial investment using discount rate.
Instructions
Calculate profitability index (PI)
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| cashFlows | Yes | ||
| initialInvestment | Yes | ||
| rate | Yes | Discount rate as decimal |
Input Schema (JSON Schema)
{
"properties": {
"cashFlows": {
"items": {
"type": "number"
},
"type": "array"
},
"initialInvestment": {
"type": "number"
},
"rate": {
"description": "Discount rate as decimal",
"type": "number"
}
},
"required": [
"initialInvestment",
"cashFlows",
"rate"
],
"type": "object"
}