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Based on the probability index rule, should a project with the following cash flows be accepted if the discount rate 14 percent? Why or why not? A. Yes; The PI is 0.96. B. Yes; The PI is 1.04 C. Yes, The PI is 1.08. D. No; The PI is 0.92 E. No; The PI is 1.04. You are considering a project with an initial cost of $8, 700. What is the payback period for this project if the cash inflows are $1, 100, $1, 640, $ 3, 800, and $4, 500 a year over the next years, respectively? A. 3.21 years B. 3.28 years C. 3.48 years D. 4.21 years e. 4.29 years A project has an initial cost of $15, 400 and produces cash inflows of $7, 200, $8, 900, and $7, 500 over three years, respectively. What is the discounted payback period if the required rate of return is 10 percent? A. 2.27 years B. 2.34 years C. 2.55 years D. 2.62 years E. Never You are analyzing two mutually exclusive projects, A and B. Project A cost $600 and has cash flows of 400 in each of the next 2 years. Project B also costs $600 and generates cash flows of $500 and $275 for the next 2 years, respectively. What is the crossover rate? A. 10 percent B. 15 percent C. 25 percent D. 40 percent E. 80 percent