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

question 115

Multiple Choice

The following information is provided by Kilmer Systems: $$\begin{array} { | l | r | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } & \text { Project D } \\\hline \text { Initial investment } & \$ 422,000 & \$ 206,000 & \$ 550,000 & \$ 500,000 \\\hline \text { PV of cash inflows } & \$ 580,000 & \$ 392,000 & \$ 814,000 & \$ 408,000 \\\hline \text { Payback period (years) } & 3.6 & 3.2 & 4.0 & 2.0 \\\hline \text { NPV of project } & \$ 158,000 & \$ 186,000 & \$ 264,000 & ( \$ 92,000 ) \\\hline\end{array}$$ 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) 1.23

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Definitions:

Public Relations

The professional practice of managing and disseminating information between an organization and the public to shape public perception.

Communication Model

A framework that describes the process of conveying messages from a sender to a receiver, potentially including elements like feedback and noise.

Shannon and Weaver

Creators of the Shannon-Weaver model, which conceptualizes the process of communication as consisting of various elements including sender, channel, and receiver.

Noise

Unwanted or distracting sounds, but in communication, it refers to any interference that distorts or blocks the message being communicated.