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A ten year project produces $68,725 cash flows at the end of each of the following ten years, and today costs $400,321. Assume the discount

A ten year project produces $68,725 cash flows at the end of each of the following ten years, and today costs $400,321. Assume the discount rate is 12%. Should this project be accepted based on the profitability index rule? Why or why not?

No; because the PI is 0.97

No; because the PI is 1.05

Yes; because the PI is 0.97

Yes; because the PI is 1.05

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