[Verse 1] When you've got projects on your desk to choose And limited capital you cannot lose There's a ratio that helps you see which way to go Present value divided by cash outflow The profitability index is the key Shows the bang for buck so clearly More than one means profits will grow Less than one means let that project go [Chorus] PI equals PV over initial cost Find the winners before money's lost Divide present value by what you pay Rank your projects the PI way Higher numbers get priority That's the profitability index, you see [Verse 2] Picture Sarah's got three projects in her hand Budget's tight across this business land Project A shows PI of one point five Project B's at zero point nine, barely alive Project C comes in at one point two Now she knows exactly what to do Rank them high to low by PI score A, then C, then B gets shown the door [Chorus] PI equals PV over initial cost Find the winners before money's lost Divide present value by what you pay Rank your projects the PI way Higher numbers get priority That's the profitability index, you see [Bridge] When capital's constrained and choices must be made This benefit-cost ratio comes to your aid Greater than one means value created Less than one leaves shareholders deflated Remember the formula, keep it in mind Present value over investment you'll find The profitability index shows the way To maximize value every single day [Chorus] PI equals PV over initial cost Find the winners before money's lost Divide present value by what you pay Rank your projects the PI way Higher numbers get priority That's the profitability index, you see [Outro] Present value over initial investment That's your profitability measurement Rank them high to low and you'll succeed PI gives you everything you need
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