Question: please help with both 9. Using the cash flow values in the table below, calculate the Profitability Index (PI). Assume a discount rate of 9.9%.

please help with both

Using the cash flow values in the table below, calculate the Profitability Index (PI).

Assume a discount rate of 9.9%.

Year	Cash Flow
0	-$39,000
1	6,978
2	13,000
3	9,000
4	11,000
5	7,497

HINT: First calculate the NPV.

Do not round intermediate values. Enter your answer as a number with 2 decimal places of precision

25.

For a typical firm, which of the following sequences is CORRECT? All costs (r's) are after taxes, and assume that the firm operates at its target capital structure.

	a.	WACC > rd > rs > re.
	b.	rs > re > rd > WACC.
	c.	rd > re > rs > WACC.
	d.	re > rs > WACC > rd.
	e.	WACC > re > rs > rd.

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