The following information is available for a potential capital investment.

Initial investment	$80,000
Salvage value	10,000
Net annual cash flow	14,820
Net present value	18,112
Useful life	10 years

The potential investment's profitability index (rounded to two decimals) is:

(a)	5.40.
(b)	1.19.
(c)	1.23.
(d)	1.40.