A capital budgeting project requires an initial investment of $200,000 in year zero. The project produces annual cash flows of $65,000 for the next four years. The cost of capital is 10%. What is the profitability index (PI) and should the project be accepted?

	a.	PI=1.10, Reject Project
	b.	PI=1.10, Accept Project
	c.	PI=1.03, Accept Project
	d.	PI=1.03, Reject project
	e.	Cannot be determined from the information