Profitability Index Explained
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
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