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Based on the Profitability Index (PI)rule,should a Project with the Following

Question 105

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Based on the profitability index (PI) rule,should a project with the following cash flows be accepted if the discount rate is 7%? 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 7%? Why or why not? A) Yes; because the PI is 1.008 B) Yes; because the PI is .992 C) Yes; because the PI is .999 D) No; because the PI is 1.008 E) No; because the PI is .992


A) Yes; because the PI is 1.008
B) Yes; because the PI is .992
C) Yes; because the PI is .999
D) No; because the PI is 1.008
E) No; because the PI is .992

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