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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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