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Bob's Burgers is planning an expansion. The initial investment is $156,000, and anticipated cash inflows are as listed below. The cost of capital is 12.5%.

Bob's Burgers is planning an expansion. The initial investment is $156,000, and anticipated cash inflows are as listed below. The cost of capital is 12.5%. Based on the profitability index, should Bob go ahead with the project? Years Cash Inflows 1. $ -25,000 2. 15,000 3. 45,000 4. 65,000 5. 85,000 6. 85,000 Last year Tammy Eyelashes experienced a 20% increase in earnings per share on 5% increase in sales. If management knows that Tammys DFL is 1.5, what is its DOL?

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