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Solo Corp. is evaluating a project with the following cash flows: Year . Cash Flow 0 (654,980) 1 275,000 2 285,000 3 295,000 4 305,000

Solo Corp. is evaluating a project with the following cash flows: Year . Cash Flow 0 (654,980) 1 275,000 2 285,000 3 295,000 4 305,000 5 315,000 The company uses a weighted average cost of capital of 13.00% Calculate the Profitability Index. Would you accept or reject the project?

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