Previous Page Next Page Page 14 of 20 Question 27 (1 point) Consider a project that requires a $9,000 invest today and will provide cash flows of $0 in year 1, $4,500 in year 2, $5,200 in year 3, and $3,400 in year 4. If the project has a 9% cost of capital, what is the profitability index of this project? O 0.14 O 0.24 O 0.35 O 0.46 O 0.55 Question 28 (1 point) FG Limited expects to have $65 million in EBIT, $14 million of additional working capital, $32 million in capital expenditures, and $38 million in depreciation this year. The firm has a tax rate of 30% and a WACC of 9%. Its free cash flow is expected to Climme han 17 million in cash $120 million in debt, and 8