Question: Consider a project with an initial investment (today, t = 0) of $195,000. This project will generate cash flows of $35,000 per year for the

Consider a project with an initial investment (today, t = 0) of $195,000. This project will generate cash flows of $35,000 per year for the next 10 years, after which the company will pay $12,500 to another for clean-up and disposal. What is the Profitability Index (PI) of the project if shareholders demand 8.50% return? Answer with a number rounded to two decimal places.

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