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

a. 0.90

b. 0.11

c. 1.90

d. 1.11

What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?