DPI is a profitability index, which is a useful indicator for evaluating the cost versus the benefit of a project. It is the profit over the investment, calculated as the NPV of the cash flow divided by the NPV of the initial capital investment.
- The units for this indicator are set to “none” so that the fraction is displayed
- If there is no capital, the indicator returns a zero value
- After tax capital is the capital spent less the tax impact of the capital depreciation
- Always based on values after royalties
- To return (NPV + Capital)/Capital = DPI + 1, select the "DPI1" indicator
DPI Reporting Options:
Users can choose to report variations of the index based on before or after tax calculations and specific discount rates. The options that can be built into custom reports are defined below:
Before Tax DPI
- DPI_BT0 = BTCF / Capital
- DPI_BT1 = BTCF@Disc#1 / Capital@Disc#1
- DPI_BT2 = BTCF@Disc#2 / Capital@Disc#2
- DPI1_BT0 = 1 + DPI_BT0 = [(BTCF + Capital) / Capital]
- DPI1_BT1 = 1 + DPI_BT1 = [(BTCF@Disc#1 + Capital@Disc#1) / Capital@Disc#1]
- DPI1_BT2 = 1 + DPI_BT2 = [(BTCF@Disc#2 + Capital@Disc#2) / Capital@Disc#2]
After Tax DPI
- DPI_AT_BTCAP0 = ATCF / Capital
- DPI_AT_BTCAP1 = ATCF@Disc#1 / Capital@Disc#1
- DPI_AT_BTCAP2 = ATCF@Disc#2 / Capital@Disc#2
- DPI1_AT_BTCAP0= 1 + DPI_AT_BTCAP0 = [(ATCF + AT Capital) / AT Capital]
- DPI1_AT_BTCAP1 = 1 + DPI_AT_BTCAP1 = [(ATCF@Disc#1 + Capital@Disc#1) / Capital@Disc#1]
- DPI1_AT_BTCAP2= 1 + DPI_AT_BTCAP2= [(ATCF@Disc#2 + Capital@Disc#2) / Capital@Disc#2]
After Tax DPI with After Tax Capital
- DPI_AT0 = ATCF / AT Capital
- DPI_AT1 = ATCF@Disc#1 / AT Capital@Disc#1
- DPI_AT2 = ATCF@Disc#2 / AT Capital@Disc#2
- DPI1_AT0= 1 + DPI_AT0 = [(ATCF + AT Capital) /AT Capital]
- DPI1_AT1= 1 + DPI_AT1 = [(ATCF@Disc#1 + AT Capital@Disc#1) / AT Capital@Disc#1]
- DPI1_AT2= 1 + DPI_AT2 = [(ATCF@Disc#2 + AT Capital@Disc#2) / AT Capital@Disc#2]