A project requires an initial investment of $10,000, will last for three years, at the end of which it will yield net annual cash flows of $4,000; $4,000; and $8,000 respectively. If the company's cost of capital is 7%, then the profitability index for this project is:

A. 1.38

B. 24.14%

C. 0.38

D. 1.38%