XYZ Corporation is experiencing hard capital rationing and will not be able to invest more than $1,000,000 this year. Develop a profitability index for the following four projects and indicate which projects will be accepted. All four projects will last 3 years and the firm uses a 10% discount rate.

project cost Annual inflows

A. $300,000 $130,000

B. 500,000 220,000

C. 155,000 65,000

D. 160,000 60,000