Common Paine, Inc. is considering a project with the following set of cash flows:

Year	Cash Flow
0	-$18,700
1	11,000
2	9,900
3	6,400

If the projects required return is 23 percent, should the firm accept the project based on the profitability index rule and why?

Group of answer choices

The profitability index is not a suitable rule to use to evaluate this project.

Yes, the profitability index (1.012) is greater than one.

No, the profitability index (1.012) is greater than one.

Yes, the profitability index (0.980) is less than one.

No, the profitability index (0.980) is less than one.