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Time 0 1 2 3 Investment B -$1 million $550,000 $425,000 $375,000 The timeline of an investment is shown above. If the cost of capital

Time 0 1 2 3

Investment B -$1 million $550,000 $425,000 $375,000

The timeline of an investment is shown above. If the cost of capital is 8%, what is the profitability index of this investment?

A. 0.171

B. 0.428

C. 0.685

D. 0.188

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