A New Product Has Startup Costs of $338,200 and Projected

Multiple Choice

A new product has startup costs of $338,200 and projected cash flows of $102,000,$187,500,and $245,000 for Years 1 to 3,respectively.What is the profitability index given a 9 percent required return?

A) .71
B) .77
C) 1.16
D) 1.30
E) 1.41