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

question 33

Essay

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

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Definitions:

Feather

A feather is a lightweight, growth from the skin of birds, serving functions such as flight, thermal insulation, and display for attracting mates.

Prosocial Behaviors

Voluntary actions intended to benefit or help others, motivated by empathy, moral principles, or the desire to act in socially acceptable ways.

Biological Sex

The physical characteristics, such as chromosomes, hormone levels, and reproductive/sexual anatomy, that classify an individual as male or female.

Observational Learning

A learning process through which individuals acquire new behaviors, skills, or attitudes by watching others, also known as social learning.