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 $27,000. For years 3 to 5, the annual cash inflow will be $33,000. What is the projects profitability index if the cost of capital is 15%?

Select one: a. 1.07 b. 1.05 c. 1.17 d. 1.13 e. 1.10

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