The Following Details Are Provided by Dopler Company What Is the Profitability Index for Project B?
A) 1

The following details are provided by Dopler Company:
$\begin{array}{|l|c|c|c|c|}\hline & \text { Project A } & \text { Project B } & \text { Project C } & \text { Project D } \\\hline \text { Initial investment } & \$ 430,000 & \$ 204,000 & \$ 566,000 & \$ 500,000 \\\hline \text { PV of cash inflows } & \$ 578,000 & \$ 380,000 & \$ 802,000 & \$ 396,000 \\\hline \text { Payback period (years) } & 3,6 & 3.2 & 4.0 & 2.0 \\\hline \text { NPV of project } & \$ 148,000 & \$ 176,000 & \$ 236,000 & 104,000 \\\hline\end{array}$

What is the profitability index for Project B?

A) 1.96
B) 1.25
C) 1.86
D) 1.37