#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...
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Пікірлер: 127
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
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
3 жыл бұрын
hi...I'M FROM MALAYSIA..TQ, i=I understand your video very well...
@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
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
Жыл бұрын
@ Saheb academy, I am trying to find MIRR video, can you please pin here?
I won't skip your ads because you deserve it. Thank you for teaching us.
@lifeisbeautiful3019
2 жыл бұрын
💕
@jastinijafeti900
Жыл бұрын
Ur pro bro 🏌️
@Highshashikant
11 ай бұрын
I skiped
@akshaysonkar5587
5 ай бұрын
True ❤
@smokedavocados
3 ай бұрын
Same :)
Your teaching technic is exellent.thank u so much for uploading video.
Sir, you always clear our mind about any topic you are teaching us... Thank you 😊
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
You are simply great sir Thank you so much for such amazing lectures 🤓✌️
Now i can have a degree in accounting and business from a scratch because of you! Just a wow
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.
Thanks brother! You da best. Would appreciate a series on cost of capital if possible.
Thank you for this teachings. Great!
You help me figure some questions out. Thank you and God blessed
Your teaching style is awesome!
Superb explanation...keep it up! Thank you for this!
No need to calculate PI for negative NPV projects. Obviously its a rejected project.very clear explanation. Thanks a lot
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 😍😍😍
bro very helpful and precise videos im gonna rock my exams and u have EARNED my likes thanks bro
Thank you so much explanaing this ..i can understand much better.Thank you brother
Thank you so much, doing my post graduate from Kenya and I highly appreciate
You saved my upcoming exam. I totally don't understand what my lectuer is explaining. Lucky I found your video.
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!!!
Thank you. Just become of U I am surviving in MBA. Being an Engineer very difficult to digest Finance subjects. Thank you.
You are teaching well but try to solve more difficult problems so that it'll be even more easier to understand for us :)
Amaizng buddy!👍🏻👊🏻👊🏻
Thank u so much for the wonderful & Useful😊
Sir your is very good i got concept in one time practice after seeing your video
Thanks man your videos help me a lot
thankyou so much. AMAZING video
I'm gonna pass my exam jst because of these great lectures 🙏🙏🙏
Thanks dear sir your interesting lecture for us......
Sir it was really beautiful teaching thank you so much
Thnq so much 🙏🙏🙏 it helped me a lot
Someone buy this guy a drink
Short and easy ..tanx for these
Thank you soo much sir, it help me a lot, Can pls post the remaining video's sir
I don't have any word for your support that my teacher doesn't give me this knowledge
you are amazing thanku for these vedios
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
2 жыл бұрын
Yeah even I need those chapters.... could u please post it bhaiya!!!!!
Great teaching, thank you so much
I have my management accounting paper tomorrow. Thank you sir👏
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 💜✨
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
4 жыл бұрын
You’re welcome dear😊👍🏼
💗 se Thank u . it Helped me a lot
👌🥰thanks for the video bro
awesome! thanks so much
the voice of the tutor is really good.
Zabardast dost boht axha kr rahe ho.
You really know how to teach
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
You are awesome sir
Sir, can you mention any book for this topic, it will be helpful
Love u, u are great, ❤️❤️
Love it.
Are we to get the present value of cashflows first before dividing them???
Thank you so so so much sir ...m
Well explained. Wish you are my teacher. I don't understand a word my professor said.
Can you solve one more problem related to the evaluation of profitability index
Bro nenga mattum Ilana na BBA la arrear vachirupan thanks bro
i would like to get your lectures on risk analysis in capital budgeting
sir you are the best
Very informative. Give me the suggest a Book . Including Mathematical problem
How to calculate Profitability Index when the cash flow is given for indefinite period.
Thank you very much sir
In my research topic I want to calculate NPV.In the first 7 years,we have outflow only,no infow,How we cacuate it?
Great job bro
In the first 7 years we have outflow only,no inflow.How we calculate NPV?
Is working Captial includes in investment
Sir please make videos on cost of capital
Brilliant
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
Thank you
Do you have videos on ratio analysis?
Sir can u please tell us from where we get questions on capital budgeting?
SIR UPLOAD NEW VIDEOS. YOUR TEACHING IS SO GOOD. THANKS.
@SahebAcademy
4 жыл бұрын
Will upload soon..
Tq so much sir
Very nice
I would like to get these notes . How do I get them and at what cost?
Thanks 🙏🙏🙏
The engineers hands up
Hare Krishna 😊 Thank you 🙏🏻
Thank you saab
we love you 💖💖💖💖
🙏🙏
Nice. cool video
❤❤❤
If PI=1, Project is also accepted. You did not mention that.
Sir please ake videos on dividend decesion practical questions based on models for bcom hons in financial management
Great
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?.
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Equation PR =PV of cash outflow ÷pv of cash inflow Did it is right?
Hlo sir Npv calculate karne baad pi kaise calculate karenge Dono ek sath mein calculate kiye hua video ni hai sir
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
4 жыл бұрын
What’s your University?
@vinodshenoy6035
4 жыл бұрын
@@SahebAcademy MG UNIVERSITY , kerala
Nice
Bruh can you please share the name of book
Mujhe aapka channel pehle kyon nhin mila 🥺
🇰🇪thank you
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
i used edu dev too
Sir, can you please start making videos on ACCA papers?
Bro, what if *PI = 1*?
@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
3 жыл бұрын
For every invested rupee we are getting a rupee in return.
@SahebAcademy
3 жыл бұрын
Cost = Inflow