You have a project with the following cash flow stream assume a 10% discount rate...

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You have a project with the following cash flow stream assume a 10% discount rate what is the profitability index of the project? Is it acceptable? Initial investment ($76,000) Year 1 $20,000 Year 2 $20,000 Year 3 $20,000 Year 4 $22,000 Year 5 $32,000 Disinvestment ($4,000) at Year 5. Calculate the profitability index for this project Is the project favorable? Why or why not

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