Present Value of an Annuity of 1

Periods

8%

9%

10%

1	.926	.917	.909
2	1.783	1.759	1.736
3	2.577	2.531	2.487

A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $50,000 and is expected to generate cash inflows of $30,000 at the end of each year for two years. The profitability index for this project is

	A.	1.01.
	B.	1.05.
	C.	1.52.
	D.	.70.