8. Based on the profitability index (PI) rule, should a project with the following cash flows be accepted if the discount rate is 8 percent? Why or why not? Year Cash Flow -S18.600 S10.000 $ 7.300 $ 3.700 A. Yes; because the Pl is 1.008 B. Yes, because the Plis.992 C. Yes, because the Plis.999 D. No; because the Pl is 1.008 E. No; because the Plis.992 9. You have a choice between two projects, Project1 pays $12,000 back at the end of 1 period on an investment of $10,000. Project 2 pays back $6,500 at the end of 1 period on an investment of $5,000. Which project should be chosen and what is the problem that you must be concerned with in this choice? A. Project 1; discount rate. B. Project 2; discount rate. C. Project 1; project scales. D. Project 2; project scales. E. Project 1, cash flow timings. 10. The elements that cause problems with the use of the IRR in projects that are mutually exclusive are: A. the discount rate and scale problems. B. timing and scale problems. C. the discount rate and timing problems. D. scale and reversing flow problems. E. timing and reversing flow problems