The Pameco Natural Resources company is considering a new 20-year project with a cost of $400,000 and annual cash flows of $50,000 in years 1-10 and $25,000 in years 11-20. The company's required rate of return is 10%. What is the expected profitability index for the project?

Group of answer choices

0.98

1.08

0.92

1.15

1.02