The Following Information Is Provided by Horowitz Systems What Is the Profitability Index for Project C? (Round Your

question 20

Multiple Choice

The following information is provided by Horowitz Systems: $$\begin{array} { | l | r | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } & \text { Project D } \\\hline \text { Initial investment } & \$ 426,000 & \$ 218,000 & \$ 554,000 & \$ 502,000 \\\hline \text { PV of cash inflows } & \$ 586,000 & \$ 386,000 & \$ 820,000 & \$ 408,000 \\\hline \text { Payback period (years) } & 3.6 & 3.2 & 4.0 & 2.0 \\\hline \text { NPV of project } & \$ 160,000 & \$ 168,000 & \$ 266,000 & \$ 94,000 \\\hline\end{array}$$ What is the profitability index for Project C? (Round your answer to two decimal places.)

• A) 1.48
• B) 1.38
• C) 1.26
• D) 1.22

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Definitions:

Heider

Fritz Heider, an Austrian psychologist known for his work in attribution theory, focusing on how individuals infer the causes of behavior.

Basic Assumption

A fundamental belief or principle that is accepted as true without proof, often serving as the basis for further reasoning or behavior.

Attribution Theory

A psychological theory that explains how individuals infer the causes of their own and others' behavior.

Dispositional Nature

Refers to inherent personality traits and tendencies that influence an individual's behavior and reactions.