Question: Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14 percent? Why or

Based on the profitability index rule, should a project with the

Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14 percent? Why or why not? Year Cash Flow 0 $ 26,200 $11,800 2 $0 3 $24,900 Yes: The PI is 0.96 Yes: The PI is 1.04 1 No: The PI is 0.96 Yes: The Pl is 1.08

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