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?
C0 = -$42,700, C1 = $16,800, C2 = $23,300, C3 = $10,700.
Question 12 options:
Yes, because the PI is 1.03
Yes, because the PI is 0.97
No, because the PI is 0.92.
No, because the PI is 0.97
No, because the PI is 0.99