Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $160,000. Bill expects the net cash inflows to be $40,000 annually for 7 years, after which he plans to scrap the equipment and retire to the beaches of Jamaica. Assuming that the required return is 15%, what is the project's PI? Should it be accepted?

a. 1.04; no

b. 0.88; no

c. 1.04; yes

d. 1.00; indifferent

e. 0.88; yes