Blue Bay Ltd. has made an initial investment of R 500 000 in a new project. The firm’s cost of capital is 12%. The investment is expected to generate the following cash inflows over the next five years:Year 1: R 50 000; Year 2: R 60 000; Year 3: R 150 000; Year 4: R 140 000; Year 5: R 500 000;

The profitability index (PI) is ... ; therefore, the investment should ...