Thandile started an aerobics boot-camp in her neighbourhood and is unsure whether this will be successful, considering the amount she invested to start the business. The members pay a once-off joining fee of R100 and pay an amount membership of R1000. If the net present value is R150 000 and profitability index is 3.75, what is her initial investment if her required rate of return is 11%?

R50 000

R565 200

R562 500