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please help with finding the PI and filling in the blanks. thank you!! Estimating the cash flow generated by $1 invested in a project The

please help with finding the PI and filling in the blanks. thank you!! image text in transcribed
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Estimating the cash flow generated by $1 invested in a project The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by the absolute value of its initial cash outflow. Consider this case: Happy Dog Soap Company is considering investing $2,750,000 in a project that is expected to generate the following net cash flows: Happy Dog Soap Company uses a WACC of 8% when evaluating proposed capital budgeting projects. Based on these cash fows, determine this project's PI (rounded to four decimal places): 0.4859 0.5125 0.5638 0.4613 Happy Dog Soap Company's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's Pt, the firm should the project. By comparison, the NPV of this project is should - in the project because the project On the basis of this evaluation criterion, Happy Dog Soap Company increase the firm's value. A project with a negative NPV will have a PI that is when it has a PI of 1.0, it will have an NPV

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