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The following information is provided by Ken Company: Project A Project B Project C Project D Initial investment $434,000 $200,000 $568,000 $510,000 PV of cash
- The following information is provided by Ken Company:
| Project A | Project B | Project C | Project D | |
| Initial investment | $434,000 | $200,000 | $568,000 | $510,000 |
| PV of cash flows | $572,000 | $396,000 | $808,000 | $402,000 |
| Payback period (years) | 3.6 | 3.2 | 4.0 | 2.0 |
| NPV of project | $138,000 | $196,000 | $240,000 | ($108,000) |
Which project has the highest profitability index?
Select one:
A.
Project A
B.
Project B
C.
Project C
D.
Project D
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th Edition
1-119-57105-6, 978-1119571056
