10. The New Performance Studio is looking to put on a new opera. They figure that the set-up and publicity will cost $300,000. The show will go on for 2 years and bring in after-tax net cash flows of $200,000 in Year 1 and $350,000 in Year 2. If the firm has a required rate of return of 6% on its investments, what is the profitability index (PI) of the new show?

A) 1.30

B) 0.95

C) 1.67

D) 2.21