Question: Aviation Inc. is considering a new inventory system that will cost $375,000. The system is expected to generate $315,000 in year one, -$25,000 (negative) in

Aviation Inc. is considering a new inventory system that will cost $375,000. The system is expected to generate $315,000 in year one, -$25,000 (negative) in year two, $110,000 in year three, and $150,000 in year four. Aviation's required rate of return is 10%. What is the Profitability Index of this project?

.53

1.2

1.7

2.1

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