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The following information is provided by Horowitz Systems: Project A Project B Project C Project D Initial investment $426,000 $218,000 $554,000 $502,000 PV of cash

The following information is provided by Horowitz Systems:

Project A

Project B

Project C

Project D

Initial investment

$426,000

$218,000

$554,000

$502,000

PV of cash inflows

$586,000

$386,000

$820,000

$408,000

Payback period (years)

3.6

3.2

4.0

2.0

NPV of project

$160,000

$168,000

$266,000

$94,000

What is the profitability index for Project C? (Round your answer to two decimal places.)

a

1.26

b

1.38

c

1.48

d

1.22

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