Question: 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

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.

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