Q.4 The Profitablity Index A company is considering three projects (G, H, and I) that have the following expected cash flows and risk-adjusted discount rates. Project Discount Rate (k) Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 0 9.0% ($800) $200 $200 $200 $200 $250 H 5.0% ($500) $300 $50 $50 $50 $200 7.0% ($400) $90 $120 $150 $100 $50 The company wants to rank the projects based on Pl. Which project has the highest PI? a. Project G b. Project H c. Projects I