please explain it in Excel

6. Profitability Index Estimating the cash flow generated by $1 Invested in investment The profitability Index (PL) is a capital budgeting tool that provides another way to compare a project's benefits and costs. It is computed as a ratio of the discounted value of the net cash flows expected to be generated by a project over its to the project's expected benefits to its not cont (NIN) A project's Pl value can be interpreted to indicate a project discounted retum generated by each dollar of net investment required to generate hou returns Blue Moose Home Builders is considering lovesting $S50,000 in a project that is expected to generate the following net cash flows: Year Year 1 Year 2 Cash Flow $350,000 $500,000 $425,000 $450,000 Years Year 4 Blue Moose uses a WACC of 10% when evaluating proposed capital budgeting projects. Based on these cmh towy determine this project's a (rounded to four decimal places) 2.2223 2.7161 2.4692 2.3457 Blue Moose uses a WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's Pt (rounded to four decimal places) 2.2223 O 2.7161 2.4692 2.3457 Blue Moose's decision to accept or reject this project is Independent of its decisions on other projects. Based on the project's Pt, the firm should the project. accept rison, the net present value (NPV) of this project is reject in the project because the project On the basis of this evaluation criterion, Blue Moose should Increase the firm's value. when it has a PI of 1.00, it will have an NPV equal to $0. When a project has a P1 greater than 1.00, it will exhibit an NPV Projects with Pls 1.00 will exhibit negative NPVS. Blue Moose uses a WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this projects P1 (rounded to four decimal places) O 2.2223 $808,070 O 2.7161 $767,667 2.4692 $969,684 0 2.3457 $888,877 Blue Moose's decision to accept or reject this project is indep $646,456 ecisions on other projects. Based on the project's PI, the firm should the project. -$258,070 By comparison, the net present value (NPV) of this project is in the project because the project On the basis of this evaluation criterion, Blue Moose should increase the firm's value when it has a P1 of 1.00, it will have an NPV equal to 10. When a project has a PI greater than 1.00, it will exhibit an NPV Projects with Pls 1.00 will exhibit negative NPVS. Blue Moose uses a WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's PT (rounded to four decimal places) 2.2223 2.7161 2.4692 2.3457 Blue Moose's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's PI, the firm should the project By comparison, the net present value (NPV) of this project is in the project because the project On the basis of this evaluation criterion, Blue Moose should Increase the firm's value when it has a Pl of 1.00, it will have an NPV equal to 50. Invest ct has a PI greater than 1.00, it will exhibit an NPV not invest PIS 1.00 will exhibit negative NPVs. Year 4 $450,000 Blue Moose uses a WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's P1 (rounded to four decimal places) 2.2223 O 2.7161 2.4692 2.3457 Blue Moose's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's Pt, the firm should the project. By comparison, the net present value (NPV) of this project is in the project because the project On the basis of this evaluation criterion, Blue Moose should Increase the firm's value. : when it has a PI of 1.00, it will have an NPV equal to 10 will not When a project has a PI greater than 1.00, it will pv Projects with Pls 1.00 will exhib will NPVS. Blue Moose uses a WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this projects PL (rounded to four decimal places) 2.2223 O 2.7161 2.4692 2.3457 Blue Moose's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's PI, the firm should the project less than $0 By comparison, the net present value (NPV) of this project is equal to $0 the basis of this evaluation criterion, Blue Moose should in the project because the project greater than $0 value when it has a Pt of 1.00, will have an NPV equal to $0. When a project has a PI greater than 1.00, it will exhibit an NPV Projects with PIS 1.00 will exhibit negative NPVS. Year 4 $450,000 Blue Moose uses = WACC of 10% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's PI (rounded to four decimal places) O 2.2223 2.7161 2.4692 2.3457 Blue Moose's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's PI, the firm should the project. less than By comparison, te Value (NPV) of this project is ecause the project On the basis of this evaluation criterion, Blue Moose should increase the firm's value. equal to when it has a P1 of 1.00, it will have an NPV equal to $0. When a project Projects with Pls greater than than 1.00, it will exhibit an NPV 1.00 will exhibit negative NPVS