7A firm wants to start a project. A team of financial analysts estimated the following cash flows

year cash flow

0 -$100,000

1 55,000

2 43,000

3 45,000

Suppose that the discount rate (interest rate) is 12%. The profitability index (PI) is

Group of answer choices

2.15

15,416.59

0.87

1.15

8A firm wants to start a project. A team of financial analysts estimated the following cash flows

year cash flow

0 -$100,000

1 55,000

2 43,000

3 45,000

Suppose that the discount rate (interest rate) is 12%. Based on your calculation of PI, the project should

Group of answer choices

Not be undertaken

Be undertaken

Be undertaken in the long run not in the short run

Be undertaken in the short run not in the long run