Wrikeman evaluates future projects by using the profitability index. The company is currently reviewing five similar projects and must choose one of the following: Picture Which project should Wrikeman select if the decision is based entirely on the profitability index?

Select one: a. Project 1. b. Project 5. c. Project 2. d. Project 4. e. Project 3.

Project Initial Investment $100,000 50,000 75,000 60,000 150,000 Present Value of Cash Inflows $ 97,000 80,000 110,000 100,000 200,000