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In a primary school setting, a child struggling with overconfidence
Profitability Index
Profitability Index is a financial metric that calculates the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.
Benefit-Cost Perspective
A method of evaluating projects or decisions by comparing the benefits they will generate to the costs required to implement them.
NPV
Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.
Present Value
The today's worth of a future sum or cash flows series, based on a predetermined rate of return.
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