We compute the profitability index of a capital-budgetingproposal by:A. dividing

We compute the profitability index of a capital-budgetingproposal by:A. dividing the present value of the annual after-tax cash flows bythe cost of the project.B. dividing the present value of the annual after-tax cash flows bythe cost of capital.C. multiplying the cash inflow by the IRR.D. multiplying the IRR by the cost of capital.