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

Question 320

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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.98 B) Yes; because the PI is 1.03 C) No; because the PI is.95 D) No; because the PI is.98 E) No; because the PI is 1.03


A) Yes; because the PI is.98
B) Yes; because the PI is 1.03
C) No; because the PI is.95
D) No; because the PI is.98
E) No; because the PI is 1.03

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