Profitability

index.

Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept.

Cash Flow	Project U		Project V
Year 0	minus $2 comma 000 comma 0002,000,000		minus $2 comma 500 comma 0002,500,000
Year 1	$500 comma 000500,000		$1 comma 250 comma 0001,250,000
Year 2	$500 comma 000500,000		$1 comma 000 comma 0001,000,000
Year 3	$500 comma 000500,000		$750 comma 000750,000
Year 4	$500 comma 000500,000		$500 comma 000500,000
Year 5	$500 comma 000500,000		$250 comma 000250,000
Discount rate	66 %		1212 %

What is the PI of project U?

nothing

(Round to two decimal places.)Project U should be

. (Select from the drop-down menu.)

What is the PI of project V?

nothing

(Round to two decimal places.)Project V should be

accepted

rejected

. (Select from the drop-down menu.)