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Based on the Profitability Index (PI) Rule, Should a Project

Question 381

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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 8 %? 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 8 %? 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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