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Consider this data: Year 1 Year Project A: 2 Year 3 Initial Investment Outlay Year 4 Year 5 Net Cost of New ($800,000) Additional Revenue

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Consider this data: Year 1 Year Project A: 2 Year 3 Initial Investment Outlay Year 4 Year 5 Net Cost of New ($800,000) Additional Revenue $600,000 $450,000 $300,000 $200,000 $100,00,000 Additional Operating Costs 135,000 90,000 60.000 180,000 30,000 Depreciation: 160,000 160,000 160,000 160,000 160,000 EBT 155,000 260,000 -90,000 50,000 -20,000 Less Tax at 35% -54,250 -17,500 -91,000 31,500 7,000 Net Income $100,750 $32,500 $169,999 $-58,500 $-13,000 Calculate the Productivity Index for Project A assuming WACC = 11.41% Calculate the Productivity Ir WACC = 11.41% O.29x 1.43x 1.13x O About 1.00x

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