A proposed project costs $300 at time 0 and will generate cash flows of $80, $200, $75, and $90 for Years 1 to 4, respectively. Because of its high risk, the project has been assigned a discount rate of 16 percent. What is the projects Profitability Index (PI) Ratio and will you accept the project and why?

A) 1.01, yes because PI > 1

B) 0.99, yes because PI < 1

C) 1.05, yes because PI > 1

D) 1.01, no because PI > 1

E) 0.99, no because PI < 1