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Assume that the firm invests $165,000 today to get $65,000 at Year 1, $90,000 at Year 2, $85,000 at Year 3, $110,000 at Year 4,

Assume that the firm invests $165,000 today to get $65,000 at Year 1, $90,000 at Year 2, $85,000 at Year 3, $110,000 at Year 4, $78,000 at Year 5, and $65,000 at Year 6. Whats the Profitability Index of this investment? Assume the interest(discount) rate of 18.7%.

1.81

1.54

1.73

1.70

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