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    -Based on the Profitability Index Rule,should a Project with the Following
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-Based on the Profitability Index Rule,should a Project with the Following

Question 80

Question 80

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?   A)  Yes;The PI is 0.96. B)  Yes;The PI is 0.80. C)  Yes;The PI is 1.08. D)  No;The PI is 0.96. E)  No;The PI is 0.80.
-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 0.80. C)  Yes;The PI is 1.08. D)  No;The PI is 0.96. E)  No;The PI is 0.80.


A) Yes;The PI is 0.96.
B) Yes;The PI is 0.80.
C) Yes;The PI is 1.08.
D) No;The PI is 0.96.
E) No;The PI is 0.80.

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