General Co. is considering investing $3,000,000 in a project that is expected to generate the following net cash flows:

Year 1 = $275,000

Year 2 = 400,000

Year 3 = 475,000

Year 4 = 475,000

General Co. uses WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, what is the project's profitability index (PI)?

General Co. decision to accept or reject the project is indepedent of its decision on other projects. Based on the project's PI, should the firm accept or reject?

By comparison, what is the NPV of this project? On the basis of evaluation criterion, should General Co. invest/not invest because the project will/will not increase the firm's value?

A project with a negative NPV will have PI that is equal to 1/greater than 1/less than 1 ; when it has a PI of 1.0, it will have a NPV greater than $0/less than $0/equal to $0 ?

Thank you!