Question: Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for $126,000. The asset has a 6-year

Charlies Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for

Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for $126,000. The asset has a 6-year life, will produce a cash flow of $38,000 in the first year, $41,000 in the second year, $44,000 in the third year. $47,000 in the fourth year, $48,000 in the fifth year, and $50,000 in the sixth year. The cost of capital is 13%. What is the project's Profitability Index (PI)? A. 1.17 B. 1.37 C. 1.39 D. 1.21 E. 1.47

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