What is the profitability index for project C

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Reference no: EM133041182

Question - The following information is provided by Kilmer Systems:

 

Project A

Project B

Project C

Project D

Initial investment

$424,000

$210,000

?$550,000

?$506,000

PV of cash inflows

$576,000

?$388,000

?$802,000

?$402,000

Payback period? (years)

3.6

3.2

4.0

2.0

NPV of project

$152,000

?$178,000

?$252,000

?($104,000)

Required - What is the profitability index for Project C?

A. 1.38

B. 1.23

C. 1.46

D. 1.26

Reference no: EM133041182

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