CPM was developed for use in managing projects about which we have good information about activity or task completion times

If two companies have identical unit sales volume and operating risk, they are most likely to also have identical:

a. sales risk. b. business risk. c. sensitivity of operating earnings to changes in the number of units produced and sold.

The following information is provided by Horowitz Systems

Project A Project B Project C Project D Initial investment $422,000 $206,000 $550,000 $500,000 PV of cash inflows $580,000 $392,000 $814,000 $408,000 Payback period (years) 3.6 3.2 4.0 2.0 NPV of project $158,000 $186,000 $264,000 $92,000 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