$3$a$,$

Your firm has limited capital to invest and is therefore interested in comparing projects based on the profitability index $($PI$),$ as well as other measures. What is the PI of the project with the estimated cash flows below? The required rate of return is $17\mathrm{.}3\%.$ Round to $3$ decimals.

Year $0$ cash flow $=-850,000$

Year $1$ cash flow $=-200,000$

Year $2$ cash flow $=410,000$

Year $3$ cash flow $=390,000$

Year $4$ cash flow $=540,000$

Year $5$ cash flow $=450,000$

$3$b$,$

What is the discount rate at which the following cash flows have a NPV of $$0?$ Answer in $\%,$ rounding to $2$ decimals.

Year $0$ cash flow $=-160,000$

Year $1$ cash flow $=45,000$

Year $2$ cash flow $=31,000$

Year $3$ cash flow $=34,000$

Year $4$ cash flow $=30,000$

Year $5$ cash flow $=33,000$

Year $6$ cash flow $=38,000$

$3$c$,$

What is the discount rate at which the following cash flows have a NPV of $$0?$ Answer in $\%,$ rounding to $2$ decimals.

Year $0$ cash flow $=-127,000$

Year $1$ cash flow $=35,000$

Year $2$ cash flow $=42,000$

Year $3$ cash flow $=42,000$

Year $4$ cash flow $=42,000$

Year $5$ cash flow $=30,000$

Year $6$ cash flow $=37,000$