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 flows divided by the absolute value of Its initial cash outflow. Consider this cases Blue Moose Home Builders is considering investing $3,225,000 in a project that is expected to generate the following net cash Nows: Year Cash Flow $325,000 $400,000 Year 3475,000 $450,000 Blue Moose Home Builders uses a WACC of 79 when evaluating proposed capital budgeting projects. Based on these cash rows, determine this project's Pl (rounded to four decimal places): 0.4721 0.4292 03863 Blue Moose Home Builders's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's PI, the tim should the project Carson the othect On the oth Yes Flow $325.000 Vest 2 $400,000 575.000 Year 0.000 Blue Moose Home desses > WACC when evaluating proposed capital budgeting projects. Based on these cash pows, determine this projects Prounded to four decimal places); 0.4721 03 0.4536 But Moose Home Tudent's decision to accept or reject this project is independent of its decision on other projects Hoved on the projers I, the firm should the project By comparison, the NPV of the On the base of this evaluation enterion, Be More Home anders should the project because the project on the firm's value A project with a negative with that who 1.0 with NPV