The prontability index (PI) is a copital budgeting tool that is defined as the present value of a project's cash inflows divided by the absolute value of its initid cash outhow. Consider this coses Free Spirit industries inc, Is considering investing $3,000,000 in a project that is expected to generate the following net casti flowis: Free Spint induttries inc uses a Wacc of 8% when evaluating proposed copital budgeting projects, Based on these cash nlows, determine this project's Pr (rounded ta four dedimal places) is 0.5453 0,4775 0.4548 0.4321 thould the project. ay comperisen, the Nin of this project is in the broject becouse the project instease the firms value. The profitabiity index (PI) is a capital budgeting tool that is defined as the present value of a project's cash infiows divided by the absolute value of its initial cash outflow, Consider this case: Free Spirit Industries Inc. is considering investing $3,000,000 in a project that is expected to generate the following net cash flows: Free 5plint Industries inc. uses a WACC of 8w when evaluating proposed copital budgeting projects, Based on these cash fiows. determine this. project's PI (rounded to four decimal places)! 0.54580,477500,45410.4371 Free soint industrien thcir decision to accenpt or relect this project is independent of its decisions on other projects. Based on the groject's PI, the firmi whishild the project. Diy comparison, the NiN of this project is On the basis of this eveliation criteson. Free Spirit thoustries Ine thatid in the project because the project increase the firms value. A project with a negative Nev will have o po thot is i when it has of Pt of T.0, it will have an NipN