Question: A proposal is on your desk. The project has an upfront cost of $89,000. For the first two years, the project will generate an annual

A proposal is on your desk. The project has an upfront cost of $89,000. For the first two years, the project will generate an annual cash inflow of $29,000. During years 3 to 5, the annual cash inflow will be $25,000. What is the project's profitability index if the cost of capital is 14%? Select one: a. 1.15 b. 1.04 c. 1.00 d. 0.92 e. 0.96

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