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A project has cash flows of -$152,000, $70,800, $62,300 and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent.

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A project has cash flows of -$152,000, $70,800, $62,300 and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. What is the profitability index? Should you accept or reject the project based on this index value? 1.075; accept 1.075; reject .925; reject .925; accept 1.120; reject

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