Question 38 (2.5 points) Consider the following scenario (the given information is the same as in the previous question): Suppose we have a project that requires an initial investment of $1,000. It will provide the cash inflows of $500 in year 1, $300 in year 2, $100 in year 3, and $20 each year hereafter. The required rate of return is 10% for this project. The profitability index for this project is OA) 0.9376 OB) 1.0624 (OC) 0.9279 OD 1.0721 Previous Page Next Page Page 38 of 40