Estimating the cash flow generated by $1 invested in a project The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash intlows divided by the absolute value of its initial cash outflow. Consider this case: Happy Dog Soap Company is considering investing $3,000,000 in a project that is expected to generate the following net cash flows: Happy Dog Soap Company uses a WaCC, of 9% when evaluating proposed capital budgeting projects: Based on these cash flows, determine this project's PI (rounded to four decimal places) 0.4612 0.4843 0.5304 0.5073 Happy Dog Soup Company's decision to accept os reject this project is independent of its decislons on other projectsi Barad on the projectes Py, the tirin should the project. A) comparison, the tapy of thes project is On the basis of this evaluation criterion, Happy Dog 50ap Company thould In the project because the project increase the firm's valued. A grolect with a negative NPN will have a 91 that is. when it has a Pr of 1.0, it will hive an hify