What Is the Profitability Index for an Investment with the Following

Multiple Choice

What is the profitability index for an investment with the following cash flows given a 9% required return? $$\begin{array} { c c } \underline{\text { Year }} &\underline{ \text { Cash Flow }} \\ 0 & - \$ 21,500 \\1 & \$ 7,400 \\2 & \$ 9,800 \\3 & \$ 8,900\end{array}$$

A) .96
B) .98
C) 1.00
D) 1.02
E) 1.04