Profitability Index & Revenue per Employee Calculator

Example for PI Calculation

Let's calculate the PI for a farmer's investment project with the following information:

• Initial Investment: $500,000
• PV of Future Cash Flows: $800,000

PI = \(\frac{\$800,000}{\$500,000} = 1.6\)

This means that for every dollar invested, the project returns $1.60 in present value terms.

Example for Revenue per Employee Calculation

Let's calculate the Revenue per Employee for Company Alpha with the following information:

• Revenue: $2,000,000
• Number of Employees: 10,000

Revenue per Employee = \(\frac{\$2,000,000}{10,000} = \$200\)