What is the Profitability Index of Project 2?

You are tasked with assessing the performance of the following projects and to rank the projects using the profitability index Project 1 The opportunity cost of capital is 8%. The initial cost of the project is $500,000 and generates the following cash flows: $228,000 in year 1, $178,000 in year 2, $249,000 in year 3, and -S12,000 in year 4. Project 2 The opportunity cost of capital is 9%. The initial cost of the project is $480,000 and generates the following cash flows: $200,000 in year 1, $150,000 in year 2, S190,000 in year 3, and $80,000 in year 4. Project 3 The opportunity cost of capital is 7%. The initial cost of the project is S570,000 and generates the following cash flows: $150,000 in year 1. $180,000 in year 2, $120,000 in year 3, and $200,000 in year 4