What is another word for PROFITABILITY INDEX?
Pronunciation: [pɹˌɒfɪtəbˈɪlɪti ˈɪndɛks] (IPA) 
The profitability index, also known as the profit investment ratio or the value investment ratio, is a financial tool used to measure the potential profitability of an investment. Other synonyms include return on investment (ROI), net present value (NPV), and internal rate of return (IRR). The profitability index is often used by business managers and investors to evaluate the cost-effectiveness of various investment opportunities. By calculating the profitability index, investors can determine whether an investment is worth pursuing or not. This tool is particularly useful in identifying investments that have a high potential ROI and low risk. Ultimately, the profitability index is an essential metric for anyone looking to make sound financial investments.
