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?

C0 = -$42,700, C1 = $16,800, C2 = $23,300, C3 = $10,700.

Question 12 options:

	Yes, because the PI is 1.03
	Yes, because the PI is 0.97
	No, because the PI is 0.92.
	No, because the PI is 0.97
	No, because the PI is 0.99

2.

Your required return is 15%. Should you accept a project with the following cash flows?

C0 = -$85, C1 = $45, C2 = $40, C3 = $35.

Question 13 options:

	Yes, because the IRR is 19.2%
	No, because the IRR is 13.9%
	Yes, because the IRR is 20.4%
	No, because the IRR is 14.7%
	Yes, because the IRR is 17.2%