Charlie has plans to open an indoor climbing center. The climbing centre equipment will cost $80,000. Charlie expects the annual after-tax cash inflows to be $20,000 for eight years, after which he plans to scrap the climbing equipment and retire. Assume the required return is 14%. What is the project's PI? Should it be accepted?

options

0.86; yes

1.00; indifferent

0.86; no

1.16; yes

1.16; no