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Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which
Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept. Cash Flow Project U Project V Year 0 -$1,800, 000 -$2, 400,000 Year 1 $450,000 $1, 200,000 Year 2 $450,000 $1,000,000 Year 3 $450,000 $800, 000 Year 4 $450, 000 $600,000 Year 5 $450,000 $400,000 Discount rate 7% 12%
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