Question: A proposal is on your desk. The project has an upfront cost of $98,000. For the first two years, the project will generate an annual

A proposal is on your desk. The project has an upfront cost of $98,000. For the first two years, the project will generate an annual cash inflow of $31,000. For years 3 to 5, the annual cash inflow will be $28,000. What is the projects profitability index if the cost of capital is 12%?

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