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1. Barnacle Bobs Fish and Tackle Shop is planning an expansion. The initial investment is...

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Accounting

1. Barnacle Bobs Fish and Tackle Shop is planning an expansion. The initial investment is $480,000, and anticipated cash inflows are as listed below. The cost of capital is 12.2%. Based on the profitability index, should Barnacle Bob go ahead with the project?YearsCash Inflows1$ 90,0002105,0003105,0004195,0005195,0006195,000 a. No, the profitability index is 2. b. No, the profitability index is 0.95. c. Yes, the profitability index is 1.18. d. Yes, the profitability index is 0.78.
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