Capital investment appraisal: An opportunity exists to invest in a project which lasts for 4 years and which requires an initial investment of 80,000. The investment has no residual value at the end of year 4, and has the following net cash flows during its life: Years 1-3 32,000 and Year 4 24,000. The required rate of return is 14% Yr Discount factor at 14% 1 0.877 2 0.770 3 0.675 4 0.592 The profiability index (PI) for this project is 1.3 True False