present value profitability index

简明释义

现值收益性指数

英英释义

例句

1.The present value profitability index (现值盈利指数) helps in making informed decisions about long-term projects.

现值盈利指数有助于对长期项目做出明智的决策。

2.Investors often look for a high present value profitability index (现值盈利指数) when choosing projects to fund.

投资者在选择资助的项目时，通常会寻找高现值盈利指数。

3.A present value profitability index (现值盈利指数) greater than one indicates a potentially profitable investment.

大于1的现值盈利指数表明这是一个潜在的盈利投资。

4.The project was evaluated using the present value profitability index (现值盈利指数) to determine its feasibility.

该项目通过使用现值盈利指数来评估其可行性。

5.We calculated the present value profitability index (现值盈利指数) to compare two different investment opportunities.

我们计算了现值盈利指数以比较两个不同的投资机会。

作文

In the realm of finance and investment, understanding various metrics is crucial for making informed decisions. One such metric is the present value profitability index, which serves as a valuable tool for evaluating the attractiveness of an investment. The present value profitability index (PVPI) is calculated by dividing the present value of future cash flows generated by an investment by the initial investment cost. This ratio provides insight into how much value an investment is expected to create relative to its cost. A PVPI greater than 1 indicates that the investment is likely to be profitable, while a value less than 1 suggests that the investment may not generate sufficient returns to justify the initial expenditure.To understand the significance of the present value profitability index, consider a hypothetical scenario where an investor is evaluating two different projects. Project A requires an initial investment of $100,000 and is expected to generate cash flows of $30,000 per year for five years. Using a discount rate of 10%, the present value of these cash flows can be calculated. The present value of cash flows from Project A amounts to approximately $113,500. Therefore, the present value profitability index for Project A would be calculated as follows:PVPI = Present Value of Cash Flows / Initial Investment = $113,500 / $100,000 = 1.135.This result indicates that Project A is expected to generate $1.135 for every dollar invested, making it a potentially attractive investment.On the other hand, let’s analyze Project B, which also requires an initial investment of $100,000 but is expected to yield cash flows of $20,000 per year for five years. Again, using the same discount rate of 10%, the present value of cash flows from Project B calculates to approximately $74,000. Thus, the present value profitability index for Project B would be:PVPI = Present Value of Cash Flows / Initial Investment = $74,000 / $100,000 = 0.74.This lower index suggests that Project B is unlikely to be a worthwhile investment since it generates only $0.74 for each dollar invested.The present value profitability index is particularly useful in capital budgeting decisions, allowing investors to compare multiple projects with different scales and cash flow patterns. It helps prioritize projects based on their potential return on investment. Moreover, the PVPI can guide companies in allocating resources efficiently, ensuring that funds are directed towards projects that offer the highest potential for profitability.In conclusion, the present value profitability index is an essential financial metric that assists investors and businesses in assessing the viability of investment opportunities. By providing a clear indication of the expected profitability relative to costs, the PVPI aids in making strategic investment decisions that align with financial goals. As markets continue to evolve, understanding metrics like the present value profitability index will remain vital for anyone involved in finance and investment planning.

在金融和投资领域，理解各种指标对于做出明智的决策至关重要。其中一个重要指标是现值盈利指数，它作为评估投资吸引力的有价值工具。现值盈利指数（PVPI）通过将投资所产生的未来现金流的现值除以初始投资成本来计算。这个比率提供了关于投资相对于其成本所期望创造的价值多少的洞察。PVPI大于1表明投资可能是有利可图的，而小于1的值则表明该投资可能无法产生足够的回报以证明初始支出。为了理解现值盈利指数的重要性，考虑一个假设场景，投资者正在评估两个不同的项目。项目A需要100,000美元的初始投资，并预计在五年内每年产生30,000美元的现金流。使用10%的折现率，可以计算这些现金流的现值。项目A的现金流现值约为113,500美元。因此，项目A的现值盈利指数将计算如下：PVPI = 现金流的现值 / 初始投资 = 113,500 / 100,000 = 1.135。这一结果表明，项目A预计每投资一美元将产生1.135美元的收益，使其成为一个潜在的吸引人投资。另一方面，让我们分析项目B，该项目同样需要100,000美元的初始投资，但预计在五年内每年产生20,000美元的现金流。同样，使用10%的折现率，项目B的现金流现值约为74,000美元。因此，项目B的现值盈利指数将是：PVPI = 现金流的现值 / 初始投资 = 74,000 / 100,000 = 0.74。这个较低的指数表明，项目B不太可能成为值得投资的项目，因为它每投资一美元仅产生0.74美元的收益。现值盈利指数在资本预算决策中尤为有用，它允许投资者比较不同规模和现金流模式的多个项目。它帮助优先考虑基于潜在投资回报的项目。此外，PVPI可以指导公司有效分配资源，确保资金流向那些提供最高盈利潜力的项目。总之，现值盈利指数是一个重要的金融指标，帮助投资者和企业评估投资机会的可行性。通过清晰地指示预期的盈利能力与成本的关系，PVPI有助于做出与财务目标一致的战略投资决策。随着市场的不断发展，理解像现值盈利指数这样的指标将对任何参与金融和投资规划的人来说仍然至关重要。