(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) The management of Cantell Corporation is considering a project that would require an initial investment of $47,000. No other cash outflows would be required. The present value of the cash inflows would be $55,930. The profitability index of the project is closest to:

A) 1.19
B) 0.81
C) 0.19
D) 0.16