2-2 Santas Closets has a project costing $22,500 and producing cash flows at the end of the following years of $12,000, $8,000, and $4,000 respectively. Should this project be accepted based on the profitability index rule if the discount rate is 6%? Why or why not?

a)No; because the Pl is 0.97 b)No; because the Pl is 1.00 c)No; because the Pl is 1.09 d)Yes; because the Plis 0.97 e)Yes; because the Pl is 1.09