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 . What's the Profitability Index of this investment? Assume the interest(discount) rate of 18.7%. 1.811.541.731.70 Question 18 2.5pts In this module, we have learned the concepts of Net Present Value and Profitability Index. Which of the following is true? The Profitablility index allows the user to find out how fast the company will be recover the initial investments to the project in either future value or present (L.e. discounted) value. NPV is a better option than Profitability index in gauging how profitable the project will be relative to its costs, as it offers a ratio of the PV of earnings to the costs incurred. Whereas the Profitability Index is computed dividing the total PV of eamings with the total PV of investments, the Net Present Value (NPV) is computed subtracting the PV of investments from the PV of earnings. This makes the Profitability Index a better tool in how much the project earned relative to the investments made, While the Net Present Value is better in gauging the sheer amount of the profit generated. None of the above (all of the above are incorrect statement)