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

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