Present Value of an Annuity of 1

Periods 8% 9% 10%

1) 0.926 0.917 0.909

2) 1.783 1.759 1.736

3) 2.577 2.531 2.487

A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $90000 and is expected to generate cash inflows of $35000 at the end of each year for three years. The profitability index for this project is

0.98. 1.00. 0.97. 1.02.