Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost exist385,000, to be paid immediately. Bill expects aftertax cash inflows of exist84,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 13 percent.
What is the project's profitability index (PI)? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) Pl