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0 1 2 3 InvestmentB: $1 million $575,000 $450,000 $350,000 The timeline of an investment is shown above. If the cost of capital is 4%,

0 1 2 3

InvestmentB: $1 million $575,000 $450,000 $350,000

The timeline of an investment is shown above. If the cost of capital is 4%, what is the profitability index of thisinvestment?

A.

1.12

B.

0.7

C.

0.28

D.

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