Consider a project that is projected to cost $40,000 today and another $20,000 in one year. It is then forecasted to generate annual cash inflows of $15,000 for a

total of 9 years starting at the end of year 4. Cost of capital is 9%. What is the project's PI?

a. 0.98

b. 1.05

c. 1.12

d. 1.19

e. 1.27