An investment project has an installed cost of $317,000. The cash flows over the 4-year life of the investment are projected to be $27,700, $56000, $55000, and $399000, respectively. if the discount rate is 15 percent and you want to invest $1000 more in the project, how much your profit be on an additional investment of $1000? (hint: Profitability index)

Select one:

a.

37

b.

40

c.

1.04

d.

49

e.

30