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10. Hunter Corporation has the following investment opportunities: I. Machine A requires an initial investment of $10,000 and is projected to realize cash inflows of
10. Hunter Corporation has the following investment opportunities: I. Machine A requires an initial investment of $10,000 and is projected to realize cash inflows of $4,000 in year 1, $6,000 in year 2, and $3,000 in year 3. II. Machine B requires an initial investment of $16,000 and is projected to realize cash inflows of $9,000 in year 1, $6,000 in year 2, and $8,000 in year 3. Hunter Corporation uses a hurdle rate of 15%. What is the profitability index of an investment in Machine B? Select one: A. 0.93 B. 1.10 C. 1.34 D. 1.53
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