Profitability

index.

Given the discount rate and the future cash flow of each project listed in the following table,

Cash Flow

Project A

Project B

Year 0

$2,000,000

$2,600,000

Year 1

$200,000

$1,300,000

Year 2

$400,000

$1,100,000

Year 3

$600,000

$900,000

Year 4

$800,000

$700,000

Year 5

$1,000,000

$500,000

Discount rate

6%

14%

, use the PI to determine which projects the company should accept.

What is the PI of project A?

nothing

(Round to two decimal places.)