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A project costs $20,000 today and it is projected to generate annual cash inflows of $4,000...

A project costs $20,000 today and it is projected to generate annual cash inflows of $4,000 for 8 years starting in one year (end of year 1). If the cost of capital is 11%, what is this project's Profitability Index (PI)? Round to two decimal places.

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YEAR cash flows -$20,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 NPV pv @ 11% 1.0000 0.9009 0.8116 0.7312 0.6

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