I need a detailed explanation on to solve this problem: You plan to open a grooming center. The grooming equipment will cost $405,000, to be paid immediately. You expect aftertax cash inflows of $88,000 annually for six years, after which you plan to scrap the equipment and retire to the beaches of Nevis. The first cash inflows occurs at the end of the first year. Assumed the required return is 13%. What is the project's Profitability Index (PI)?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.