Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![5.The following information is provided by Pemberton Systems:
Project A
$434,000
$572,000
3.6
Project B
$200,000
$396,000
Project C Project D
Initial investment
PV of cash inflows
$568,000
$510,000
$808,000
$402,000
4.0
Payback period (years)
NPV of project
3.2
2.0
$138,000
$196,000
$240,000
$108,000
Which project has the highest profitability index?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F94cca580-8b60-45bf-89b5-0ff8d96202e2%2F7d3b908c-6609-4f30-bd26-11085abc0607%2Feg7f7x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5.The following information is provided by Pemberton Systems:
Project A
$434,000
$572,000
3.6
Project B
$200,000
$396,000
Project C Project D
Initial investment
PV of cash inflows
$568,000
$510,000
$808,000
$402,000
4.0
Payback period (years)
NPV of project
3.2
2.0
$138,000
$196,000
$240,000
$108,000
Which project has the highest profitability index?
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