The correct answer is B. 3.19.
The profitability index (PI) is a measure of a project’s profitability. It is calculated by dividing the present value of the project’s future cash flows by the initial cost of the project.
In this case, the present value of the project’s future cash flows is Rs 4150 and the initial cost is Rs 1300. Therefore, the PI is 3.19.
A PI of 3.19 means that the project is expected to generate 3.19 times its initial cost in present value terms. This is a good return on investment, and the project should be accepted.
Option A is incorrect because it is the interest rate. The interest rate is not relevant to the calculation of the PI.
Option C is incorrect because it is the reciprocal of the PI. The reciprocal of the PI is the benefit-cost ratio (BCR). The BCR is another measure of a project’s profitability, but it is not as commonly used as the PI.
Option D is incorrect because it is the total value of the project’s future cash flows. The total value of the project’s future cash flows is not relevant to the calculation of the PI.