A four-year project, if taken, will require an initial investment of $120,000. The expected end- of-year cash inflows are as follows: Year1=$30,000, Year2=30,000, Year3=42,000, Year4=$42,000. If the appropriate cost of capital for this project is 11%, which of the following is a correct decision? O Reject the project because NPV = -$30,507, which is less than 0. Reject the project because IRR is 7.20%, which is less than the cost of capital, 11%. Accept the project because IRR is 10.04%, which is less than the cost of capital, 11%. Accept the project because IRR is positive. After graduating from college, you received an offer from Shrek Corporation as a corporate financial analyst. Your department is currently considering two independent projects, Project A and Project B. The company's cost of capital is 10%. The projects have the following cash flows: Year Cash Flow (A) Cash Flow (B) 0 -500 -500 1 150 300 2 300 300 3 250 0 4. 100 300 What is project A's Profitability Index (PI)? O 1.2809 O 1.600 0.4552 1.1966