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 inflows divided by the absolute value of its initial cash outfiow. Consider this case: Happy Dog Soap Company is considering investing $3,225,000 in a profect that is expected to generate the following net cash fiowsi Happy Dog Soap Company uses a WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's Pl (rounded to four decimal places): 0.4243 0,4041 0.3699 0,4647 Hapoy Dog Sosp Company's decision to accept or reject this project is independent of its decivons on other projects. Based on the project's Ph, the firm should the project. By comparisen, the NPV of this project is On the basis of this evsluation criterion, Happy Dog Soap Company should in the project berchuse the project jncrease the firm) value