Panhandle Corp. is considering three projects. Each project has an initial outlay of $175,000.

Project A is expected to earn $53,000 per year for four years.

Project B is expected to earn $233,000 in year four.

Project C is expected to earn $75,000 in year one, $65,000 in year two, $40,000 in year three, $25,000 in year four.

The WACC is 6%.

How would project C's profitability index change if the cash flow in year 4 was $35,000 instead of $25,000?

the profitability index would increase to 1.0852

the profitability index would decrease to 1.0852

the profitability index would increase to 1.149

the profitability index would decrease to 1.149