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:

Fuzzy Badger Transport Company is considering investing $2,500,000 in a project that is expected to generate the following net cash flows:

Fuzzy Badger Transport Company's uses a WACC of 7% when evaluating proposed budget projects. Based on the cash flow determine this project PI (roundto four decimal places)

PLEASE ANSWER ALL QUESTIONS LISTED ON PICTURES INCLUDING FILL IN THE BLANK

Estimating the cash flow generated by $1 invested in a project The profitability index (PI) is a capitat 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: Furzy Badger Transport Company is considering investing $2,500,000 in a project that is expected to generate the following net cash flows: Fuzry Badger Transport Company uses a WACC of 7% when evaluating proposed capital budgeting projects, Based on these cash flows, determine this project's PI (rounded to four decimal places): 0.6052 0.577 0.6327 0,5502 Fuzzy Badger Transport Company's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's P1, the firm should the project. By comparison, the NPV of this project is in the project because the project - On the basis of this evaluation criterion, Fuzzy Badger Transport Company should increase the firm's value. A project with a negotive NPV will have a Pt that is ; when it has a PI of 1.0 , it will have an NPV