Question: Freddy's BBQ, a Washington D.C. area ribs joint which caters to high level politicians, is looking to open a new franchise in Philadelphia. They anticipate

Freddy's BBQ, a Washington D.C. area ribs joint which caters to

Freddy's BBQ, a Washington D.C. area ribs joint which caters to high level politicians, is looking to open a new franchise in Philadelphia. They anticipate that the new restaurant will cost $21.5 M to opern today, but will produce cash flows of $7.4 M, $9.8 M, and $8.9 M over the next three years, respectively. What is the profitability index of this investment given a 9.00% required return

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