Blue Moose Home Builders is considering investing $450,000 in a project that is expected to generate the following net cash flows:

Year	Cash Flow
Year 1	$300,000
Year 2	$400,000
Year 3	$425,000
Year 4	$450,000

Blue Moose uses a WACC of 8% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this projects PI (rounded to four decimal places).

2.5777

2.7209

2.8641

3.1505

Blue Mooses decision to accept or reject this project is independent of its decisions on other projects. Based on the projects PI, the firm should ____ (accept/reject) the project.

By comparison, the net present value (NPV) of this project is ________. On the basis of this evaluation criterion, Blue Moose should _________ (invest/not invest) in the project because the project (will/will not) increase the firms value.

When a project has a PI greater than 1.00, it will exhibit an NPV (equal to $0, greater than $0, less than $0). when it has a PI of 1.00, it will have an NPV equal to $0. Projects with PIs (greater than, equal to, less than) 1.00 will exhibit negative NPVs.