The management of Tony Corporation is considering the purchase of a new machine costing $400,000. No residual value is expected. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively.

In addition to the foregoing information the following data is available.

The profitability index for this investment is:

A. 1.45

B. .88

C.1.14

D. .70

please explain how to solve this problem.