Options for the first blank: reject/accept

2nd blank: $776704; $899341; $981100; -$217583; $817583; $654066

3rd blank: investot invest

4th blank: will not/will

5th blank: equal to $0; greater than $0 or less than $0

6th blank: less than; equal to or greater than

The proftability index (PI) is a capital budgeting tool that provides another way to compare a project's benefits and costs. It is computed as a ratio of the discounted value of the net cash flows expected to be generated by a project over its life (the project's expected benefits) to its net cost (NINV). A project's PI value can be interpreted to indicate a project's discounted return generated by each dollar of net investment required to generate those returns Consider the case of Fuzzy Badger Transport Company: Fuzzy Badger Transport Company is considering investing $600,000 in a project that is expected to generate the following net cash flows: Cash Flow Year Year 1 $325,000 Year 2 $500,000 Year 3 $450,000 Year 4 $450,000 Fuzzy Badger uses a WACC of 8% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's PI (rounded to four decimal places). O 2.2445 O 2.3626 O 2,4807 O 2.5989 Fuzzy Badger's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's PI, the firm should the project. By comparison, the net present value (NPV) of this project is .On the basis of this evaluation criterion, Fuzzy Badger should in the project because the project increase the firm's value when it has a PI of 1.00, it will have an NPV equal to $0. When a project has a PI greater than 1.00, it will exhibit an NPV 1.00 will exhibit negative NPVS. Projects with PIs