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Questions 2 - 6 are all based on the following information. Pam Denile, the CEO of Vidco Global Corporation, belleves that the firm could create

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Questions 2 - 6 are all based on the following information. Pam Denile, the CEO of Vidco Global Corporation, belleves that the firm could create additional value by adding protective face shields to its product mix. Machinery used in producing the shields would cost $16,100,000. According to Ms. Denies projections, the subsequent net cash flows the company would generate for the Investors if it entered the shield business would be 52,150,000 per year for 13 years. These are the only cash flows expected. The firm's annual weighted average cost of capital for a project of this type is 8.6%. QUESTION: What is the PROFITABILITY INDEX for the shield project? O A 7.4884 8.0.5760 C.1.0215 D. 0.1493 E 1.7360

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