Tractor Supply is considering two mutually exclusive projects, A and B. Project A costa $95,000 and is expected to generate $65,000 in year one and $75,000 in year two.

Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year throe, and $45,000 in year four. Tractor Supply's required rates of retum for these projects is 10%. The profitability index for Project A is

A. 1.17,

O B. 1.27

O C. 1.22.

D. 1.12