The management of London Corporation is considering the purchase of a new machine costing $750,000. The company's desired rate of return is 6%. The present value factors for $1 at compound interest of 6% for 1 through 5 years are 0.943, 0.890, 0.840, 0.792, and 0.747, respectively. In addition to this information, use the following data in determining the acceptability in this situation:

Year	Income from Operations		Net Cash Flow
1	$37,500		$187,500
2	37,500		187,500
3	37,500		187,500
4	37,500		187,500
5	37,500		187,500

The present value index for this investment is:

a.0.95.

b.1.00.

c.1.25.

d.1.05.