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Your firm has limited capital to invest and is therefore interested in comparing projects based on the profitability index (PI), as well as other measures.

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Your firm has limited capital to invest and is therefore interested in comparing projects based on the profitability index (PI), as well as other measures. What is the Pl of the project with the estimated cash flows below? The required rate of return is 19.9%. Round to 3 decimals. Year 0 cash flow = -870,000 Year 1 cash flow = -130,000 Year 2 cash flow = 470,000 Year 3 cash flow = 360,000 Year 4 cash flow = 360,000 Year 5 cash flow = 440,000 Answer: Check What is the net present value (NPV) of your proposed expansion into the Canada? Assume that the cash flows after year occur at the end of each year. The required rate of return is 16.7%. (Round to nearest penny) Year O cash flow = -750,000 Year 1 cash flow = -130,000 Year 2 cash flow = 540,000 Year 3 cash flow = 380,000 Year 4 cash flow = 440,000 Year 5 cash flow = 520,000 Answer: 19

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