Sometimes a radio program is added to the carrier in such a way that the program signal causes fluctuations in the carrier's frequency. This is called frequency modulation (FM). Another way of sending a radio signal is to make the peaks of the carrier wave bigger or smaller.
Calculating the percentage profit made. It is also possible to work out the percentage profit that is made on a deal. This is done using the profit and the price that something cost originally, before it was sold on (the Cost Price). Percentage Profit = (profit/cost price) x 100%. The next example shows how this is done. Example.
Calculation of Profitability Index. While the NPV shows if the investment will yield a profit (positive NPV) or a loss (negative NPV), the profitability index will show the degree of the profit or loss. Business owners can use either the Present Value of Future Cash Flows (PV) or the Net Present Value (NPV) to calculate the profitability index. Profitability Index = (PV/Amount Invested) = 1 + (NPV/Amount Invested) Using the example, a company expects to receive $100,000 three years from now on an $85,000 investment.