(solution) Financial Management : 69) Your firm is considering an investment that will cost $750,000 today. The

(solution) Financial Management : 69) Your firm is considering an investment that will cost $750,000 today. The

Financial Management : 69) Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $300,000 in years 2 through 4, and $100,000 in year 5. The discount rate that your firm uses for projects of this type is 13.25%. What is the investment's profitability index? a. 1.4 b. 1.6 c. 1.2 d. .2