Question: B& H, Inc is currently considering an five-year project that has an initial outlay or cost of $220,000. The future cash inflows from its project

B& H, Inc is currently considering an five-year project that has an initial outlay or cost of $220,000. The future cash inflows from its project for years 1 through 5 are the same at $50,000. B & H has a discount rate of 8%. Because of capital rationing (shortage of funds for financing), B &H wants to compute the profitability index (PI) for each project. What is the PI for B&H's current project?

about 1.9

about 0.91

about 1.00

about 1.39

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