Question: This answer is 100/% correct. but from where he get this number $8,060 ? Glassett Corporation is considering a project that would require an investment

This answer is 100/% correct. but from where he get this number $8,060 ?

Glassett Corporation is considering a project that would require an investment of $62,000. No other cash outflows would be involved. The present value of the cash inflows would be $70,060. The profitability index of the project is closest to:

A. 0.13 B. 1.13 C. 0.87 D. 0.12

The profitability index is 0.13 ($8,060 / $62,000).

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