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The Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is $1,640. The firm's cost of

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The Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is $1,640. The firm's cost of capital is 6.9%. After-tax cash flows, including depreciation, are as shown in the table below. Calculate the profitability index (PI) for this project. End of Year 1 2 3 Cash Flow $505 505 505 505 505 4 5 Review Only

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