Jammersmith Inc. is considering a new project that will cost $$1,200,000.$ The project is expected to generate the following cash flows over the next five years: $$500,000$ in year one, $$400,000$ in year two, $$300,000$ in year three, $$200,000$ in year four, and $$100,000$ in year five. Jammersmith's required rate of return is $12\%.$

What is the profitability index of this project?

$0\mathrm{.}88$

$0\mathrm{.}97$

$1\mathrm{.}03$

$1\mathrm{.}10$