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Based on the Profitability Index (PI) Rule, Should a Project

Question 61

Multiple Choice

Based on the profitability index (PI) rule, should a project with the following cash flows be accepted if the discount rate is 8 %? Why or why not? Based on the profitability index (PI)  rule, should a project with the following cash flows be accepted if the discount rate is 8 %? Why or why not?   A)  Yes; because the PI is.98 B)  Yes; because the PI is 1.03 C)  No; because the PI is.95 D)  No; because the PI is.98 E)  No; because the PI is 1.03


A) Yes; because the PI is.98
B) Yes; because the PI is 1.03
C) No; because the PI is.95
D) No; because the PI is.98
E) No; because the PI is 1.03

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