| Present Value of an Annuity of 1 | |||
| Periods | 8% | 9% | 10% |
| 1 | 0.926 | 0.917 | 0.909 |
| 2 | 1.783 | 1.759 | 1.736 |
| 3 | 2.577 | 2.531 | 2.487 |
A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $37500 and is expected to generate cash inflows of $18750 at the end of each year for three years. The profitability index for this project is
