part A at the top Part b is question 20

Franchise L is considering a project which would cost $100 million (today). This project is forecast to return cash inflows of $10 million at the end of year 1, $60 million at the end of year 2, and $80 million at the end of year 3. If the appropriate cost of capital is 10%, then what is the profitability index (PI) of this project? (Round to 2 decimal places). O 0.67 O 1.50 none of the answer choices are correct 1.07 Question 20 3 pts When estimating projected cash flows associated with a potential project, the analyst should consider only the incremental cash flows. In simple terms, this means the analyst should consider O only those cash flows that return (don't return) investment dollars to stockholders (bondholders). O only those cash flows that represent sunk costs to the firm. O only those cash flows that will result in taxable income for the firm. only those cash flows that will (won't) happen if we do (don't do) the project