A firm is evaluating a project which will cost $10,269 today and provide cash flows in years 1, 2, and 3 of $7,560, $3,286, $3,268 and, respectively. The firm’s discount rate is 8%. What is the profitability index?
a. 1.21
b. 0.86
c. 1.46
d. 0.99
e. 1.58