Assume there is a project where the firm will initially invest $180,000 to receive $44,000 at Year 1, $35,000 at Year 2, $24,000 at Year 3, $44,000 at Year 4, $35,500 at Year 5, and $36,500 at Year 6. If the interest/discount rate is 10.30%, what is the profitability index?

Group of answer choices

0.88

0.93

1.12

1.07

So, how would our answer change if there was a reinvestment of $22,000 at year 3, and that the revenue at year 5 increased to $105,000 as a result?

Group of answer choices

1.12

0.98

1.02

0.88