Question: Tule TIme Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the intial outlay for

Tule TIme Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the intial outlay for such a production is $1,500,000 and the appropriate discount rate is 6% for the cash flows, then what is the profitability index for the project?

a) 0.11

b) 1.11

c) 0.90

d) 1.90

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