This answer is 100/% correct. but from where he get this number $8,060 ?
Glassett Corporation is considering a project that would require an investment of $62,000. No other cash outflows would be involved. The present value of the cash inflows would be $70,060. The profitability index of the project is closest to:
A. 0.13B. 1.13C. 0.87D. 0.12
The profitability index is 0.13 ($8,060 / $62,000).