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 PI of the project with the

estimated cash flows below? The required rate of return is $19\mathrm{.}2\%.$ Round to $3$ decimals.

Year $0$ cash flow $=-860,000$

Year $1$ cash flow $=-130,000$

Year $2$ cash flow $=360,000$

Year $3$ cash flow $=470,000$

Year $4$ cash flow $=460,000$

Year $5$ cash flow $=550,000$

Answer: