The Following Information Is Provided by Rojas Company What Is the Profitability Index for Project B? (Round Your

question 116

Multiple Choice

The following information is provided by Rojas Company: $\begin{array}{|l|r|r|r|r|} \hline&{\text { Project A }} &{\text { Project B }} &{\text { Project C }} & {\text { Project D }} \\\hline \text { Initial investment } & \$ 424,000 & \$ 212,000 & \$ 552,000 & \$ 504,000 \\\hline \text { PV of cash inflows } & \$ 588,000 & \$ 396,000 & \$ 800,000 & \$ 402,000 \\\hline \text { Payback period (years) } & 3.6 & 3.2 & 4.0 & 2.0 \\\hline\text { NPV of project }&\$ 164,000 & \$ 184,000 & \$ 248,000 & (\$ 102,000) \\\hline\end{array}$ What is the profitability index for Project B? (Round your answer to two decimal places.)

• A)1.92
• B)1.36
• C)1.25
• D)1.87

---

Definitions:

Performance-Monitoring

The process of continuously analyzing performance metrics to assess the efficiency and effectiveness of various activities in an organization.

Correction Capabilities

The ability of a system or process to adjust and correct itself to maintain or resume proper functioning.

Control Process

A method used to guide and manage tasks, operations, or systems to achieve desired outcomes and standards.

Objectives And Standards

Targeted outcomes that individuals or organizations aim to achieve, measured against predetermined benchmarks.