Please Review the Information on 4 Potential Investments -
Based on the Above Data, Which Project Carries the |

Multiple Choice

Please review the information on 4 potential investments:
$$\begin{array} { | r | r | r | r | r | } \hline & \text { Praject A } & { \text { Praject B } } & { \text { Praject C } } & { \text { Praject D } } \\\hline \text { Initial investment } & \$ 200,000 & \$ 250,000 & \$ 300,000 & \$ 90,000 \\\hline \text { PV of cash inflows } & \$ 285,000 & \$ 295,000 & \$ 420,000 & \$ 94,000 \\\hline \text { Payback period (years) } & 7.2 & 6.0 & 9.5 & 2.0 \\\hline \text { NPV of project } & \$ 85,000 & \$ 45,000 & \$ 120,000 & \$ 4,000 \\\hline \text { Profitability index } & 1.43 & 1.10 & 1.40 & 1.04 \\\hline\end{array}$$
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Based on the above data, which project carries the lowest level of risk?

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