A Project Has Expected Cash Inflows, Starting with Year 1

Multiple Choice

A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?

A) $7,899.16
B) $8,098.24
C) $8,166.19
D) $9,211.06
E) $9,250.00