33

The management of Pattee Corporation is considering three investment projects-M, N, and O. Project M would require an investment of $25,000, Project N of $67,000, and Project O of $70.000. The present value of the cash inflows would be $28,750 for Project M, $73.700 for Project N, and $79,100 for Project O. The profitability index of investment project N is closest to: 0.10 0.90 0.09 1.10