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Advance Industries is considering upgrading its manufacturing line. The cash flows are shown below. Year 0 1 2 3 4 Cash Flow -2500 1500 1900

Advance Industries is considering upgrading its manufacturing line. The cash flows are shown below.

Year 0 1 2 3 4

Cash Flow -2500 1500 1900 -600 900

WACC 9%

Calculate the profitability index (PI).

a. 1.008

b. 1.134

c. 1.243

d. 1.260

e. 1.386

Calculate the project's MIRR.

a. 13.08%

b. 14.54%

c. 24.33%

d. 15.99%

e. 17.44%

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