Question: Using the cash flow values in the table below, calculate the Profitability Index (PI). Assume a discount rate of 9.7%. 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 9.7%.

Year Cash Flow
0 -$39,000
1 6,836
2 13,000
3 9,000
4 11,000
5 9,314

HINT: First calculate the NPV.

Do not round intermediate values. Enter your answer as a number with 2 decimal places of precision (i.e. 1.23 or 0.12)).

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