The company is considering another investment which would have an initial cost of $900,000 and an NPV of $50,000. There is a situation of capital rationing, and you have suggested that the firm should use the profitability index to choose which investment to implement. Advise the company.

for investment before the Profitability Index was = Net Present Value + Initial Investment / Initial Investment

= 584,785.43 + 1,190,000 / 1,190,000

= 1,774,785.43 / 1,190,000

= 1.49

can i get reference with answer please