Profitability index.   Given the discount rate and the future cash flow of each project listed in the following​ table, use the PI to determine which projects the company should accept. What is the PI of project​ B?(Round to two decimal​ places.)     Cash Flow Project A Project B     Year 0 −​$1,800,000   −​$2,400,000     Year 1 ​$500,000   ​$1,200,000     Year 2 ​$600,000   ​$1,100,000     Year 3 ​$700,000   ​$1,000,000     Year 4 ​$800,000   ​$900,000     Year 5 ​$900,000   ​$800,000     Discount rate 5​% 17​%

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.