Consider a capital expenditure project to purchase and install new equipment with an initial cash outlay of $19,000. The project is expected to generate net after-tax cash flows each year of $1,100 for five years, and at the end of the project, a one-time after-tax cash flow of $2,500 is expected. The firm has a weighted average cost of capital of 10 percent and requires a 5-year payback on projects of this type. Calculate the profitability index for the project.

a. 0.30

b. 0.22

c. -0.71

d. -0.64

e. none of the above