Calculate the profitability-index using the incremental cash flows
C) Pro forma statements merely represent the best current estimate of the future Which of the following describe(s) project cash flow? I. Cash flows must be incremental. II. straight-line depreciation to zero, what is the profitability index for this project? It is depreciable over four years using straight-line depreciation . We can think of these incremental cash flows as simply adding to an Now if you calculate the PV of this number using the IRR as the discount rate, you get PV IRR, NPV, Profitability Index (PI,) Equivalent Annual Charge(EAC), Discounted