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PLEASE SHOW ALL WORK The following information is provided by Sour Student Accountants: Project A Project B Project C Project D Initial investment $434,000 $200,000

PLEASE SHOW ALL WORK

The following information is provided by Sour Student Accountants:

Project A

Project B

Project C

Project D

Initial investment

$434,000

$200,000

$568,000

$510,000

PV of cash inflows

$572,000

$396,000

$808,000

$402,000

Payback period (years)

3.6

3.2

4.0

2.0

NPV of project

$138,000

$196,000

$240,000

$108,000

Which project has the highest profitability index? Please show your calculations.

A) Project A

B) Project B

C) Project C

D) Project D

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