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Profitability Index
A calculation that measures the ratio between the present value of future cash flows to the initial investment, used to assess the profitability of an investment.
IRR
The discount rate at which the net present value of all the cash flows from a project or investment equals zero.
Mutually Exclusive Investment
This refers to a situation in corporate finance where choosing one investment option prevents the selection of another due to constraints such as capital or projects serving the same purpose.
Net Present Value Profiling
A process of determining the value of a series of cash flows by discounting them to the present value to evaluate the profitability of an investment.
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