The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment:

Year	Operating Income		Net Cash Flow
1	$18,750		$93,750
2	18,750		93,750
3	18,750		93,750
4	18,750		93,750
5	18,750		93,750

The present value index for this investment is

a. 1.00

b. 1.05

c. 0.95

d. 1.25