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Determining the profitability index

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Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 12.87 percent. The initial outlay for the project is $435,759. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $180,470

Year 2: $153,449

Year 3: $469,997

Year 4: $331,325

Round the answer to two decimal places.

Reference no: EM131402271

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