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Adding Profitability Index computation (PI)

Open patakib opened this issue 5 years ago • 1 comments

Hello!

I added PI value calculator as a function which returns the profitability of a project.

Reference: https://en.wikipedia.org/wiki/Profitability_index

Interpretation: PI > 1: project is acceptable PI < 1: project is unacceptable PI = 1: neutral.

Thanks for the review!

patakib avatar Jun 11 '20 13:06 patakib

There is a mistake in the code, should be: return ((future_cashflow / (1+rate)**np.arange(1, len(future_cashflow)+1)).sum(axis=0)) / -initial_inv

OriKatz1 avatar Jun 08 '22 07:06 OriKatz1