1) A 50- year project has a cost of $500,000 and has annual cash ows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the profitability index of the project. A) 2.16 B) 2.76 C) 1.76 D) 2.46 E) 2.06 Answer: B Explanation: A) B) C) D) E)