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

total of 9 years starting at the end of year 5. Cost of capital is 12%. What is the project's PI?

a. 0.88

b. 0.94

c. 1.01

d. 1.09

e. 1.18