The profitability index $($PI$)$ is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by the absolute value of its initial cash outflow. Consider this case:

Free Spirit Industries Inc. is considering investing $$3,225,000$ in a project that is expected to generate the following net cash flows:

$\backslash$table$[[$Year$,$Cash Flow$],[$Year $1,$$$375,000$