#6 Profitability Index (PI) - Investment Decision - Financial Management ~ B.COM / CMA / CA INTER

In this video I have explained the Profatibility Index Method of Capital Budgeting and also explained a problem.
After watching this video you will be very confident in this PI method.
Net Present Value (NPV)
• #4 Net Present Value (...
Internal Rate of Return
• #5 Internal Rate of Re...
Average Rate of Return
• #3 Average Rate of Ret...
Payback Period
• #2 Payback Period - In...
Financial Management Playlist:
• Financial Management -...
This is for the students of B.COM, BBA, CA INTER, CMA and any other accounting courses which has this chapter in its syllabus.
PDF Notes
drive.google.com/file/d/1DWE7...
Clear your doubts by direct messaging us on Instagram
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#financialmanagement #bba #bcom #cma

Пікірлер: 127

  • @SahebAcademy
    @SahebAcademy3 жыл бұрын

    Correction : PI = 1 when NPV = 0 When PV of inflow and outflow is same then the PI will be 1 and NPV = 0 Sorry for mentioning PI = 0 which is incorrect.

  • @SahebAcademy

    @SahebAcademy

    3 жыл бұрын

    Interpretation of PI=1 “You will earn a dollar for every dollar invested” So you are not earning anything extra ; that’s why NPV = 0 You have just recovered or break even your cost of investment.

  • @syahirahmdsarip3229

    @syahirahmdsarip3229

    3 жыл бұрын

    hi...I'M FROM MALAYSIA..TQ, i=I understand your video very well...

  • @lakmaliweerasinghe3028

    @lakmaliweerasinghe3028

    2 жыл бұрын

    @@SahebAcademy NBIR ( Net benift investment ratio ) so i want to know NBIR = PI , is this correct or is this deference concept ?

  • @balakrishnanr648

    @balakrishnanr648

    2 жыл бұрын

    yah ratio cannot be neg , so PI = 1 means inflow and outflow are the same, that means isn't the DF here is IRR??

  • @sreenivaskampala

    @sreenivaskampala

    Жыл бұрын

    @ Saheb academy, I am trying to find MIRR video, can you please pin here?

  • @jenardpino3542
    @jenardpino35423 жыл бұрын

    I won't skip your ads because you deserve it. Thank you for teaching us.

  • @lifeisbeautiful3019

    @lifeisbeautiful3019

    2 жыл бұрын

    💕

  • @jastinijafeti900

    @jastinijafeti900

    Жыл бұрын

    Ur pro bro 🏌️

  • @Highshashikant

    @Highshashikant

    11 ай бұрын

    I skiped

  • @akshaysonkar5587

    @akshaysonkar5587

    5 ай бұрын

    True ❤

  • @smokedavocados

    @smokedavocados

    3 ай бұрын

    Same :)

  • @SangitaKumari-ns8ei
    @SangitaKumari-ns8ei4 жыл бұрын

    Your teaching technic is exellent.thank u so much for uploading video.

  • @-ibmshah-
    @-ibmshah-3 жыл бұрын

    Sir, you always clear our mind about any topic you are teaching us... Thank you 😊

  • @nashvilleomesh
    @nashvilleomesh Жыл бұрын

    from 254 here.....You are an amazing teacher.....I have struggled with this for for a month only to find a solution here. Thank you

  • @kalyanigaikwad2207
    @kalyanigaikwad22072 жыл бұрын

    You are simply great sir Thank you so much for such amazing lectures 🤓✌️

  • @BekaT6073
    @BekaT60739 күн бұрын

    Now i can have a degree in accounting and business from a scratch because of you! Just a wow

  • @heenavarma6392
    @heenavarma6392 Жыл бұрын

    Thankyou so much , learned techniques of capital budgeting back to back video in 30 mins then what would have taken me 3 hrs to understand , saved a lot of time during exam.

  • @bhuvmittal
    @bhuvmittal3 жыл бұрын

    Thanks brother! You da best. Would appreciate a series on cost of capital if possible.

  • @olabanjionifade591
    @olabanjionifade5912 жыл бұрын

    Thank you for this teachings. Great!

  • @muhammadtasiuabubakar937
    @muhammadtasiuabubakar9372 жыл бұрын

    You help me figure some questions out. Thank you and God blessed

  • @_Infocars
    @_Infocars Жыл бұрын

    Your teaching style is awesome!

  • @shraddhusharma1795
    @shraddhusharma17952 жыл бұрын

    Superb explanation...keep it up! Thank you for this!

  • @sheronnipun8838
    @sheronnipun88382 жыл бұрын

    No need to calculate PI for negative NPV projects. Obviously its a rejected project.very clear explanation. Thanks a lot

  • @rakshithaj3512
    @rakshithaj35122 жыл бұрын

    I'm so so happy u r better thn our teachers .. u teach so good evn if i haven't studied anything nd just watch it videos i would score more thn ever.. nd ur voice oh god it's so sweet 😍😍😍

  • @shaunakchatla949
    @shaunakchatla949 Жыл бұрын

    bro very helpful and precise videos im gonna rock my exams and u have EARNED my likes thanks bro

  • @shrikanthpantawane
    @shrikanthpantawane Жыл бұрын

    Thank you so much explanaing this ..i can understand much better.Thank you brother

  • @nikoyabiblemoments
    @nikoyabiblemoments2 жыл бұрын

    Thank you so much, doing my post graduate from Kenya and I highly appreciate

  • @scyscyscy8899
    @scyscyscy88993 жыл бұрын

    You saved my upcoming exam. I totally don't understand what my lectuer is explaining. Lucky I found your video.

  • @mangalavenkatesh3473
    @mangalavenkatesh34732 жыл бұрын

    I have a doubt whether to take (add) working capital (if given in Q ) to the denominator of profitability index formula? I thank u for these videos... Helped me lot in understanding the concepts.. u explain very clearly!!!

  • @vivekryadavofficial
    @vivekryadavofficial Жыл бұрын

    Thank you. Just become of U I am surviving in MBA. Being an Engineer very difficult to digest Finance subjects. Thank you.

  • @chaitanyachaithu2064
    @chaitanyachaithu20643 жыл бұрын

    You are teaching well but try to solve more difficult problems so that it'll be even more easier to understand for us :)

  • @thomaskline6823
    @thomaskline68233 жыл бұрын

    Amaizng buddy!👍🏻👊🏻👊🏻

  • @sam259
    @sam2593 жыл бұрын

    Thank u so much for the wonderful & Useful😊

  • @chaitra.k6761
    @chaitra.k67613 жыл бұрын

    Sir your is very good i got concept in one time practice after seeing your video

  • @blackphilip
    @blackphilip2 жыл бұрын

    Thanks man your videos help me a lot

  • @mansisharma3152
    @mansisharma31523 ай бұрын

    thankyou so much. AMAZING video

  • @uhagadwal805
    @uhagadwal8052 жыл бұрын

    I'm gonna pass my exam jst because of these great lectures 🙏🙏🙏

  • @MuhammadIsmail-qd7me
    @MuhammadIsmail-qd7me3 жыл бұрын

    Thanks dear sir your interesting lecture for us......

  • @chandanapoojar8492
    @chandanapoojar84922 жыл бұрын

    Sir it was really beautiful teaching thank you so much

  • @ummesaba1451
    @ummesaba14513 жыл бұрын

    Thnq so much 🙏🙏🙏 it helped me a lot

  • @Lewiskinyua
    @Lewiskinyua2 жыл бұрын

    Someone buy this guy a drink

  • @hazinaismail1753
    @hazinaismail17533 жыл бұрын

    Short and easy ..tanx for these

  • @sivanandhag7638
    @sivanandhag76384 жыл бұрын

    Thank you soo much sir, it help me a lot, Can pls post the remaining video's sir

  • @bigthinker-17
    @bigthinker-173 ай бұрын

    I don't have any word for your support that my teacher doesn't give me this knowledge

  • @user-jj7kc1my2x
    @user-jj7kc1my2x6 ай бұрын

    you are amazing thanku for these vedios

  • @buzemfen6848
    @buzemfen68484 жыл бұрын

    Thank you so much sir 🙏🙏🙏 it helped me a lot🌹🌹🌹🌹... Can you please make a video on... 1. Working Capital Management 2. Cost of capital and capital structure 3. Dividend decision.. 🌻🌻🌻🌻🌻🌻🌻

  • @oohamayy

    @oohamayy

    2 жыл бұрын

    Yeah even I need those chapters.... could u please post it bhaiya!!!!!

  • @keerthana2496
    @keerthana24968 ай бұрын

    Great teaching, thank you so much

  • @rizikiawino1444
    @rizikiawino1444 Жыл бұрын

    I have my management accounting paper tomorrow. Thank you sir👏

  • @aahanapotan4212
    @aahanapotan4212 Жыл бұрын

    Today is my exam and I'm learning capital budgeting from your videos😭it's helping me a lot. Thank you so much, you teach awesome 💜✨

  • @isharagayashani2500
    @isharagayashani25004 жыл бұрын

    Thank you very much sir. I watched all the videos. These helped me a lot.I am a bba student .I am from Sri Lanka.

  • @SahebAcademy

    @SahebAcademy

    4 жыл бұрын

    You’re welcome dear😊👍🏼

  • @Abdul_Rahman_IN
    @Abdul_Rahman_IN2 жыл бұрын

    💗 se Thank u . it Helped me a lot

  • @gurukadlaskar6954
    @gurukadlaskar6954 Жыл бұрын

    👌🥰thanks for the video bro

  • @sonasingh131
    @sonasingh1312 жыл бұрын

    awesome! thanks so much

  • @kritikavishwakarma3176
    @kritikavishwakarma31762 жыл бұрын

    the voice of the tutor is really good.

  • @shahzaibharoon3948
    @shahzaibharoon3948 Жыл бұрын

    Zabardast dost boht axha kr rahe ho.

  • @minevermabula4981
    @minevermabula4981 Жыл бұрын

    You really know how to teach

  • @husseinibrahim6002
    @husseinibrahim60023 жыл бұрын

    Great teacher may God bless you as you shine as on such topics but may question is at the end of NPV when you add all the present value were you going to subtract the initial investment or what is it? Sir let me know plz

  • @Randomguy-bs3cd
    @Randomguy-bs3cd3 жыл бұрын

    You are awesome sir

  • @ankitmishra5242
    @ankitmishra52423 жыл бұрын

    Sir, can you mention any book for this topic, it will be helpful

  • @VivekKumar-cu5po
    @VivekKumar-cu5po Жыл бұрын

    Love u, u are great, ❤️❤️

  • @filmvsseries5414
    @filmvsseries54142 жыл бұрын

    Love it.

  • @emmanuelabuchi6489
    @emmanuelabuchi64893 жыл бұрын

    Are we to get the present value of cashflows first before dividing them???

  • @user-lp1bj4rr6y
    @user-lp1bj4rr6y7 ай бұрын

    Thank you so so so much sir ...m

  • @jennapun9418
    @jennapun94183 жыл бұрын

    Well explained. Wish you are my teacher. I don't understand a word my professor said.

  • @deepa.mdeepa.m2952
    @deepa.mdeepa.m29523 жыл бұрын

    Can you solve one more problem related to the evaluation of profitability index

  • @gokulcg6505
    @gokulcg65052 жыл бұрын

    Bro nenga mattum Ilana na BBA la arrear vachirupan thanks bro

  • @isaactoo2983
    @isaactoo29832 жыл бұрын

    i would like to get your lectures on risk analysis in capital budgeting

  • @migeagipedarengh1491
    @migeagipedarengh14913 жыл бұрын

    sir you are the best

  • @jayabratachakraborty4559
    @jayabratachakraborty45592 жыл бұрын

    Very informative. Give me the suggest a Book . Including Mathematical problem

  • @sangramkumarnayak5959
    @sangramkumarnayak59593 жыл бұрын

    How to calculate Profitability Index when the cash flow is given for indefinite period.

  • @vivekkoppu
    @vivekkoppu2 жыл бұрын

    Thank you very much sir

  • @dr.puthumajoy892
    @dr.puthumajoy8922 жыл бұрын

    In my research topic I want to calculate NPV.In the first 7 years,we have outflow only,no infow,How we cacuate it?

  • @Malik-ix2kx
    @Malik-ix2kx Жыл бұрын

    Great job bro

  • @dr.puthumajoy892
    @dr.puthumajoy8922 жыл бұрын

    In the first 7 years we have outflow only,no inflow.How we calculate NPV?

  • @sureshreddy7212
    @sureshreddy72123 жыл бұрын

    Is working Captial includes in investment

  • @veesamvenkatajeevankumar3432
    @veesamvenkatajeevankumar34324 жыл бұрын

    Sir please make videos on cost of capital

  • @PrabhdeepSinghSidana
    @PrabhdeepSinghSidana Жыл бұрын

    Brilliant

  • @deepa.mdeepa.m2952
    @deepa.mdeepa.m29523 жыл бұрын

    Evaluate the two alternatives according to the 1.payback method 2. Return on investment method 3. Net present value method Assume straight-line method of depreciation

  • @user-gc1ek6bv1k
    @user-gc1ek6bv1k Жыл бұрын

    Thank you

  • @manojpandey7526
    @manojpandey75265 ай бұрын

    Do you have videos on ratio analysis?

  • @ankitakamwal9478
    @ankitakamwal9478 Жыл бұрын

    Sir can u please tell us from where we get questions on capital budgeting?

  • @abhaygujar3434
    @abhaygujar34344 жыл бұрын

    SIR UPLOAD NEW VIDEOS. YOUR TEACHING IS SO GOOD. THANKS.

  • @SahebAcademy

    @SahebAcademy

    4 жыл бұрын

    Will upload soon..

  • @akankshaben8580
    @akankshaben85802 жыл бұрын

    Tq so much sir

  • @debojit2812
    @debojit2812 Жыл бұрын

    Very nice

  • @markwafula4188
    @markwafula41887 ай бұрын

    I would like to get these notes . How do I get them and at what cost?

  • @santoshj6835
    @santoshj68352 жыл бұрын

    Thanks 🙏🙏🙏

  • @indrashischandramanna167
    @indrashischandramanna167 Жыл бұрын

    The engineers hands up

  • @kdasurrenderedsoul7613
    @kdasurrenderedsoul76132 ай бұрын

    Hare Krishna 😊 Thank you 🙏🏻

  • @anisahussein2056
    @anisahussein20562 жыл бұрын

    Thank you saab

  • @anisahussein2056
    @anisahussein20562 жыл бұрын

    we love you 💖💖💖💖

  • @newgenerationfacts7644
    @newgenerationfacts76444 жыл бұрын

    🙏🙏

  • @mrahmedfuad2656
    @mrahmedfuad26564 жыл бұрын

    Nice. cool video

  • @lovescars2725
    @lovescars27257 ай бұрын

    ❤❤❤

  • @AaaBbb-sj1rp
    @AaaBbb-sj1rp3 жыл бұрын

    If PI=1, Project is also accepted. You did not mention that.

  • @aartisain6786
    @aartisain67868 ай бұрын

    Sir please ake videos on dividend decesion practical questions based on models for bcom hons in financial management

  • @noorulshazma1140
    @noorulshazma11402 жыл бұрын

    Great

  • @ntcuong01ct1
    @ntcuong01ct13 жыл бұрын

    Dear Friends, I have a questions: 1/ In the Capital Budgeting for 5 years, ABC company spent 500 million USD and borrowed 200 million USD from the bank. I want to calculate the break even point of of the capital budgeting. How do you do?.

  • @user-gc1ek6bv1k
    @user-gc1ek6bv1k Жыл бұрын

    ❤❤❤❤❤❤

  • @shahanajasmin4069
    @shahanajasmin4069 Жыл бұрын

    Equation PR =PV of cash outflow ÷pv of cash inflow Did it is right?

  • @misschitrali6227
    @misschitrali62272 жыл бұрын

    Hlo sir Npv calculate karne baad pi kaise calculate karenge Dono ek sath mein calculate kiye hua video ni hai sir

  • @vinodshenoy6035
    @vinodshenoy60354 жыл бұрын

    Pls make an video of accounts of banking company. B.com 4th sem. Exam are. Starting on 23rd pls🙏🏻 Amalgamation and. Liquidation was. Easily understood. Thanks a lots

  • @SahebAcademy

    @SahebAcademy

    4 жыл бұрын

    What’s your University?

  • @vinodshenoy6035

    @vinodshenoy6035

    4 жыл бұрын

    @@SahebAcademy MG UNIVERSITY , kerala

  • @afnankhattak7763
    @afnankhattak77632 жыл бұрын

    Nice

  • @opadityastark7828
    @opadityastark7828 Жыл бұрын

    Bruh can you please share the name of book

  • @kdasurrenderedsoul7613
    @kdasurrenderedsoul76132 ай бұрын

    Mujhe aapka channel pehle kyon nhin mila 🥺

  • @sabinaluchu9590
    @sabinaluchu95902 жыл бұрын

    🇰🇪thank you

  • @sdubey00
    @sdubey008 ай бұрын

    Sir please be bilingual because sometimes it feels like we're listening to a speech or something. You can use hindi to explain some points because it will connect us to you in a better way. By the way i understood the concept. Thanks

  • @techguide57
    @techguide57 Жыл бұрын

    i used edu dev too

  • @asadwaheed5506
    @asadwaheed55064 жыл бұрын

    Sir, can you please start making videos on ACCA papers?

  • @anjanadevibrahmagnani9168
    @anjanadevibrahmagnani91683 жыл бұрын

    Bro, what if *PI = 1*?

  • @SahebAcademy

    @SahebAcademy

    3 жыл бұрын

    If it is equal to one, then we have break even the cost. We have just covered the cost so we are indifferent between proceeding or not proceeding with the project.

  • @SahebAcademy

    @SahebAcademy

    3 жыл бұрын

    For every invested rupee we are getting a rupee in return.

  • @SahebAcademy

    @SahebAcademy

    3 жыл бұрын

    Cost = Inflow

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