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Based on the Profitability Index Rule, Should a Project with the Following

Question 11

Multiple Choice

Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14 percent? Why or why not?
Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14 percent? Why or why not? A) Yes; The PI is 0.96. B) Yes; The PI is 1.04. C) Yes; The PI is 1.08. D) No; The PI is 0.96. E) No; The PI is 1.04.


A) Yes; The PI is 0.96.
B) Yes; The PI is 1.04.
C) Yes; The PI is 1.08.
D) No; The PI is 0.96.
E) No; The PI is 1.04.

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