Question: Flo's Flowers has a proposed project with an initial cost of $40,000 and cash flows of $8,500, $15,600, and $22,700 for Years 1 to 3,

Flo's Flowers has a proposed project with an initial cost of $40,000 and cash flows of $8,500, $15,600, and $22,700 for Years 1 to 3, respectively. Based on the profitability index rule, should the project be accepted if the discount rate is 9.5 percent? Why or why not?

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