Finance People Need Your Help....how to Calc Profitability Index in Excel ???

[leeland]

well i have an assingment in excel for finance which is asking me to calc the IRR, PI, and NPV for a project to see if it is worthy of accepting or not

well for the first two senerio's the NPV is negative and finally on the best case senerio it is positive

i am trying to figure out a formula to get the PI

here are the three senerios

at 80000 units
IV. Project CFs (292,500) 52,920 64,800 56,160 116,820

at 105000 units
IV. Project CFs (292,500) 70,920 82,800 74,160 134,820

at 130000 units
IV. Project CFs (292,500) 88,920 100,800 92,160 152,820


here is what i ahve come up with so far...but am not to sure of myself since i am kinda lost

Results Value Sensitivity Analyis (Sales)
(formulas) (values entered manually)
Worst Case Base Case Best Case
NPV (74,646.59) (27,265.63) 20,115.33
IRR -0.2189% 8.2952% 16.3955%
PI -0.2552 -0.0932 0.0688


thanks in advance


leeland

 

[ggavinmoss]

Prepare to be innundated by "Do your own homework" posts.

I'll start: Do your own homework. 🙂

-geoff

 

[maziwanka]

ewww. ive helped in other posts but i hate finance.

 

[leeland]

Originally posted by: ggavinmoss
Prepare to be innundated by "Do your own homework" posts.

I'll start: Do your own homework. 🙂

-geoff

well thanks for the info,
i am not asking for peeps to do the homework, i am asking to see if there is an easier way to calc PI in excel, there is no function for it...