An investment that costs $5,100 will produce annual cash flows of $2,060 for a period of 4 years. Given a desired rate of return of 12%, what is the present value index? Use Appendix Table 2. (Do not round intermediate calculations. Round your answer to three decimal points.)

Multiple Choice

• 1.227.

• 0.815.

• 2.476.

• 4.408.