(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) The management of Keno Corporation is considering three investment projects-B, C, and D. Project B would require an investment of $15,000, Project C of $50,000, and Project D of $89,000. The present value of the cash inflows would be $16,350 for Project B, $56,500 for Project C, and $96,120 for Project D.
-The profitability index of investment project C is closest to:

A) 0.13
B) 0.87
C) 0.12
D) 1.13