Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept. What is the PI...

Profitability

index.

Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept.

What is the PI of project B?(Round to two decimal places.)

Cash Flow	Project A	Project B
Year 0	−$1,800,000		−$2,400,000
Year 1	$500,000		$1,200,000
Year 2	$600,000		$1,100,000
Year 3	$700,000		$1,000,000
Year 4	$800,000		$900,000
Year 5	$900,000		$800,000
Discount rate	5%	17%

Jun 08, 2022

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