A company is trying to determine whether to expand its business by building a new...
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A company is trying to determine whether to expand its business by building a new manufacturing plant. The initial cash outflow for the project will be $14,600. The required return is 11 percent. The new plant will generate cash inflows over four years. These cash inflows will be $4,200 for the first year, $5,500 for the second year, $6,100 for the third year, and $8,300 for the fourth year. What is the profitability index? Enter your answer as dollars with 2 digits to the right of the decimal point in the box shown below. Your
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