Millenium Genetics Corporation has a proposal for a project that will have the following cash flows in the next four years. What is the net present value and the profitability index for this project? The discount rate is 6%. Using each method, is it a “Go” or a “No Go?”
Investment Beginning of Year 1 500,000
Income End of Year 1 265,000
Income End of Year 2 215,000
Additional Investment in Year 3 105,000
Income End of Year 4 320,000