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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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