What is the profitability index for this proposed project if the required rate of return is 12%?

 

Year	Cash Flows
0	-1,000,000
1	200,000
2	400,000
3	300,000
4	700,000

 

a. 1.16

b. 1.13

c. 1.22

d. 1.25

e. 1.32