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7 years ago
The following information is provided by Glinda Systems:

   Project A   Project B   Project C   Project D
Initial investment   $424,000   $212,000   $552,000   $504,000
PV of cash inflows   $588,000   $396,000   $800,000   $402,000
Payback period (years)   3.6   3.2   4.0   2.0
NPV of project   $164,000   $184,000   $248,000   $102,000

What is the profitability index for Project B? (Round your answer to two decimal places.)
A) 1.25
B) 1.87
C) 1.92
D) 1.36
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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#2
7 years ago
Will mark this subject solved, thanks
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#3
3 years ago
thank you
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