The Following Information Is Provided by Pemberton Systems Which Project Has the Highest Profitability Index?
A) Project a |

The following information is provided by Pemberton Systems: $$\begin{array} { | l | r | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } & \text { Project D } \\\hline \text { Initial investment } & \$ 422,000 & \$ 212,000 & \$ 562,000 & \$ 516,000 \\\hline \text { PV of cash inflows } & \$ 588,000 & \$ 380,000 & \$ 810,000 & \$ 390,000 \\\hline \text { Payback period (years) } & 3.6 & 3.2 & 4.0 & 2.0 \\\hline \text { NPV of project } & \$ 166,000 & \$ 168,000 & \$ 248,000 & \$ 126,000 \\\hline\end{array}$$ Which project has the highest profitability index?

A) Project A
B) Project B
C) Project C
D) Project D