Biology Forums - Study Force

A company seeking investment opportunities has collected the following information:

   Project A   Project B   Project C   Project D
Initial investment   $400,000   $250,000   $150,000   $270,000
PV of cash inflows   $570,000   $295,000   $210,000   $282,000
Payback period (years)   3.6   3.0   4.75   3.5
NPV of project   $170,000   $45,000   $60,000   $12,000
Profitability index   1.43   1.18   1.40   1.04

If the company makes a decision based on the net present value, which project will be selected?
A) Project A
B) Project B
C) Project C
D) Project D

Content hidden

Makes perfect sense, thx

Happy to help :D