ILLUSTRATION: The Burgos Corporation is considering investing in a project. It requires an immediate cash outlay of P100,000. It has a life of four years and will be depreciated on a straight-line basis (no salvage value). The firm's tax rate is 25% and requires a return of 10%. Income before depreciation is projected to be: YEAR 1 2 Income before depreciation P30,000 P30,000 3 P40,000 4 P40,000 The present value factors for P1 at 10% is Year 1 Present Value Factor 0.909 2 0.826 3 0.751 4 0.683 The profitability index of the project (rounded to the nearest hundredth) is Your answer 1 point The accounting rate of return 1 point of the project is Your answer