A four-year financial project has estimates of net cash flows shown in the following table:

It will cost $65,000 to implement the project, all of which must be invested at the beginning of the project. After the fourth year, the project will have no residual value. Using the most likely estimates of cash flows, conduct a discounted cash flow calculation assuming a 20 percent hurdle rate with no inflation. (You may use either Excel® or a paper-and-pencil calculation.) What is the discounted profitability index of theproject?

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Year Pessimistic Most Liely Optimistic S14,000 2 19,000 27,000 4 32,000 $20,000 25,000 30,000 35,000 $22,000 30,000 36,000 39,000