Blue Moose Home Builders is considering investing $450,000 in a project that is expected to generate the following net cash flows:

Year	Cash Flow
Year 1	$325,000
Year 2	$400,000
Year 3	$425,000
Year 4	$425,000

Blue Moose uses a WACC of 8% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this projects PI (rounded to four decimal places).

2.7310

2.8747

3.1622

2.5872

Blue Moose's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's PI, the firm should the project. By comparison, the net present value (NPV) of this project is in the project because the project . On the basis of this evaluation criterion, Blue Moose should increase the firm's value. When a project has a PI greater than 1.00, it will exhibit an NPV Projects with PIs ; when it has a PI of 1.00 , it will have an NPV equal to $0. 1.00 will exhibit negative NPVs