The Following Information Is Provided by Turnbridge Systems Calculate the Profitability Index for Project C

question 1

Essay

The following information is provided by Turnbridge Systems:
$\begin{array}{ccccc} & \text { Project A } & \text { Project B } & \text { ProjectC } & \text { Project D } \\\text { Initial investment } & \$ 438,000 & \$ 218,000 & \$ 560,000 & \$ 516,000\\\text { PV of cash inflows } & \$ 582,000 & \$ 388,000 & \$ 800,000 & \$ 394,000 \\\text { Payback period (years) } & 3.6 & 3.2 & 4.0 & 2.0 \\\text { NPV of project } & \$ 144,000 & \$ 170,000 & \$ 240,000 & (\$ 122,000)\end{array}$ Calculate the profitability index for Project C.Show your calculations and round to two decimal places.