BelalM

When NPV is entered with a -ve Sign (esp to calculate the EAA stuff) - you end up with a positive EAA. If you entered it as a positive number - you would get -ve payments...

Yes PI can be used to select projects in a situation of Capital Rationing.

First make sure that the Capital Budget constraint has not been exceeded.
If two projects have identical NPVs - the PI acts as a tie-breaker.

CP