Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information is provided by Doppler Systems: Project A Project B Project C Project D Initial investment $438,000 $218,000 $564,000 $510,000 PV of cash
The following information is provided by Doppler Systems:
| Project A | Project B | Project C | Project D | |
| Initial investment | $438,000 | $218,000 | $564,000 | $510,000 |
| PV of cash inflows | $570,000 | $400,000 | $808,000 | $406,000 |
| Payback period (years) | 3.6 | 3.2 | 4.0 | 2.0 |
| NPV of project | $132,000 | $182,000 | $244,000 | $104,000 |
Calculate the profitability index for Project A. (Round your answer to two decimal places.)
A.
1.09
B.
1.67
C.
1.3
D.
0.86
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
