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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:
What is the profitability index for Project B?
| 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) |
1.98 | |
1.38 | |
1.26 | |
1.90
|
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