Using the profitability index when evaluating projects

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Reference no: EM131594763

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 5.79 percent. The initial outlay for the project is $311,469. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $195,993

Year 2: $64,098

Year 3: $356,023

Year 4: $380,187

Round the answer to two decimal places.

Reference no: EM131594763

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