Question: Siegmeyer Corp. is considering a new inventory system, that will cost $425,000. The system is expected to generate positive cash flow over the next four

Siegmeyer Corp. is considering a new inventory system, that will cost $425,000. The system is expected to generate positive cash flow over the next four years in the amount of $200,000 in year one, $100,000 in year two, $150,000 in your three, and $120,000 in your four. Siegmeyers required rate of return is 11%. What is the profitability index of this project?

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