Question
The following information is provided by Pemberton? Systems: Project A Project B Project C Project D Initial investment $ 428 comma 000$428,000 $ 212 comma
The following information is provided by Pemberton? Systems:
Project A | Project B | Project C | Project D | |
Initial investment | $ 428 comma 000$428,000 | $ 212 comma 000$212,000 | $ 570 comma 000$570,000 | $ 514 comma 000$514,000 |
PV of cash inflows | $ 580 comma 000$580,000 | $ 394 comma 000$394,000 | $ 802 comma 000$802,000 | $ 406 comma 000$406,000 |
Payback period? (years) | 3.6 | 3.2 | 4.0 | 2.0 |
NPV of project | $ 152 comma 000$152,000 | $ 182 comma 000$182,000 | $ 232 comma 000$232,000 | $ 108 comma 000$108,000 |
Which project has the highest profitability? index?
A.
Project A
B.
Project B
C.
Project C
D.
Project D
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