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Please Refer to the Following Data Concerning 4 Investment Alternatives

question 31

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Please refer to the following data concerning 4 investment alternatives:
 Praject A  Praject B  Praject C  Praject D  Initial investment $210,000$400,000$550,000$1,000,000 PV of cash  Inflows $285,000$490,000$800,000$990,000 Payback period  (years)  7.26.09.52.0 NPV of project $75,000$90,000$250,000($10,000\begin{array}{|l|r|r|r|r}\hline & \text { Praject A } & { \text { Praject B } } & { \text { Praject C } } & { \text { Praject D } } \\ \hline \text { Initial investment } & \$ 210,000 & \$ 400,000 & \$ 550,000 & \$ 1,000,000 \\\hline \text { PV of cash } \\\text { Inflows } & \$ 285,000 & \$ 490,000 & \$ 800,000 & \$ 990,000 \\\hline \text { Payback period } & \\\text { (years) } & 7.2 & 6.0 & 9.5 & 2.0 \\\hline \text { NPV of project } & \$ 75,000 & \$ 90,000 & \$ 250,000 & (\$ 10,000 \\\hline\end{array}

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What is the profitability index for Project A?

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