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A project costs $20,000 and produces cash flows at the end of the following years of $12,000, $8,000, and $4,000 respectively. Based on the profitability

A project costs $20,000 and produces cash flows at the end of the following years of $12,000, $8,000, and $4,000 respectively. Based on the profitability index rule, should this project be accepted if the discount rate is 6 percent? Why or why not? No; because the Pl is 0.97 No; because the Pl is 1.00 No; because the Pl is 1.09 Yes; because the Plis 0.97 Yes; because the Pl is 1.09

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