Question: 1. Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 12 percent? Why
1. Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 12 percent? Why or why not?
Year
| Year | Cash Flow |
| 0 | $-26,200 |
| 1 | $11,800 |
| 2 | $0 |
| 3 | $24,900 |
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