QM Motors invests $40 million in a new project which is expected to generate the following cash flows:

Years 1 2 3 4 Cash Flows ($ millions) 10 10 15 15 Given that the companys required rate of return is 12%, the projects profitability index is closest to:

Select one:

a. 0.82

b. 0.93

c. 1.25

d. None of the choices.