A project manager wants to invest in a project with an initial cost of $$58,500$ and cash flows of $$32,400$ and $$38,500$ in Years $1$ and $2.$ The manager's

employer requires a discount rate of $10$ percent and also a return of $$1\mathrm{.}10$ in today's dollars for every $$1$ invested. Will the project be approved? Why or

why not?

Multiple Choice

Yes; because the NPV is positive.

No; because the project does not meet either requirement.

Yes; because the PI is greater than $1.$

No; while the project returns more than $10$ percent it does meet the $$1\mathrm{.}10$ per $$1$ requirement.

Yes; because both criteria are met.