You Are Analyzing a Project and Have Prepared the Following

Multiple Choice

You are analyzing a project and have prepared the following data: Required payback period 2.5 years
Required return 8.50%
Based on the profitability index of _______ for this project,you should _______ the project.

A) .97; accept
B) 1.05; accept
C) 1.18; accept
D) .97; reject
E) 1.05; reject