ork #$6$D $($Profitability Index$)$

Page $2$ of $4$

This set of problems is designed to be calculated using the Excel or financial calculator. Do not use financial tables to calculate these problems.

Question $2(1$ point$)$

Gold Mining, Inc. is using the profitability index $($PI$)$ when evaluating projects. Gold Mining's cost of capital is $10\mathrm{.}76$ percent. What is the PI of a project if the initial cost are $$1,392,840$ and the project life is estimated as $9$ years? The project will produce the same after$-$tax cash inflows of $$659,337$ per year at the end of the year.

Round the answer to two decimal places.