Question
The following details are provided by Dopler Company: Project A Project B Project C Project D Initial investment $420,000 $200,000 $550,000 $500,000 PV of cash
The following details are provided by Dopler Company:
Project A
Project B
Project C
Project D
Initial investment
$420,000
$200,000
$550,000
$500,000
PV of cash inflows
$570,000
$380,000
$800,000
$390,000
Payback period (years)
3.6
3.2
4.0
2.0
NPV of project
$150,000
$180,000
$250,000
($110,000)
What is the profitability index for Project B
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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
324663854, 978-0324663853
