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Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Project C Project D Project E Investment required $ 12,200 $ 53,000 $

Eddie Corporation is considering the following three investment projects (Ignore income taxes.):

Project C Project D Project E
Investment required $ 12,200 $ 53,000 $ 98,000
Present value of cash inflows $ 14,330 $ 74,290 $ 114,060

The profitability index of investment project D is closest to:

  • 0.40

  • 1.40

  • 0.60

  • 0.29

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