The Following Information Is Provided by Doppler Systems Calculate the Profitability Index for Project A

question 34

Multiple Choice

The following information is provided by Doppler Systems: $$\begin{array} { | l | r | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } & \text { Project D } \\\hline \text { Initial investment } & \$ 426,000 & \$ 214,000 & \$ 558,000 & \$ 516,000 \\\hline \text { PV of cash inflows } & \$ 584,000 & \$ 382,000 & \$ 806,000 & \$ 390,000 \\\hline \text { Payback period (years) } & 3.6 & 3.2 & 4,0 & 2.0 \\\hline \text { NPV of project } & \$ 158,000 & \$ 168,000 & \$ 248,000 & \$ 126,000 \\\hline\end{array}$$ Calculate the profitability index for Project A.(Round your answer to two decimal places. )

• A)1.01
• B)1.08
• C)1.37
• D)1.67

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Definitions:

Paramecium

A single-celled freshwater organism belonging to the kingdom Protista, characterized by its oval shape and the presence of cilia for movement and feeding.

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia, which they use for movement and feeding.

Hydrogen Bond

Attraction between a covalently bonded hydrogen atom and another atom taking part in a separate polar covalent bond.

Polar Covalent Bond

A type of chemical bond where electrons are unequally shared between atoms, leading to partial electric charges.