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Nelsons Industrial Supply is considering a project that has projected cash inflows of $6,000 a year for 4 years. The initial cost of the project

Nelsons Industrial Supply is considering a project that has projected cash inflows of $6,000 a year for 4 years. The initial cost of the project is $16,800 and the required return is 12.75 percent. Should this project be accepted based on the profitability index criterion? Why or why not?

no; because the PI is .58

yes; because the PI is .58

yes; because the PI is 1.07

no; because the PI is 1.07

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