Question: Based on the profitability index (PI), should a project with the following cash flows be accepted if the discount rate is 5%? Why or why

Based on the profitability index (PI), should a project with the following cash flows be accepted if the discount rate is 5%? Why or why not? Year Cash flow lo (18,600) 1 10,000 2 7,300 | 3,700 No; the Pl is 0.992 O No: the Pl is 1.04 Yes; the Pl is 1.04 O Yes: the Pl is less than the discount rate O No: the Pl is 0.96

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