SJU TV has 5 TV shows to consider producing. The expected cash flows for the projects are listed below.

Yr Agathe

American

Crime Exposed The Club

0 -$4,000,000 -$2,000,000 -$1,500,000 -$1,250,000

1 $750,000 $500,000 $1,000,000 $600,000

2 $1,000,000 $500,000 $1,000,000 $600,000

3 $1,500,000 $750,000 -$500,000 $600,000

4 $2,000,000 $500,000 $600,000

5 $1,000,000 -$250,000

SJU TV has a WACC of 8% annually. What is the Profitability Index (PI) of the Exposed project and should it be accepted? (Round to the 2nd decimal place)

A.0.92 and reject

B.0.92 and accept

C.1.09 and reject

D.1.09 and accept

E. 1.00 and reject