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It costs $25,000 to survey land development for feasibility purposes. If it is feasible, the project will cost $150,000 and the expected cash flows are:

It costs $25,000 to survey land development for feasibility purposes. If it is feasible, the project will cost $150,000 and the expected cash flows are:

Year 1: $60,000

Year 2: $0

Year 3: $100,000

Year 4: $0

Year 5: $60,000

There is also a $10,000 salvage value in year 5. The discount rate is 18%. Calculate the profitability index (PI).

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