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

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