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Trey Medical Supplies, Inc. has decided to consider investing in a new delivery system. The firm uses the Profitability Index approach to decision-making. The new

Trey Medical Supplies, Inc. has decided to consider investing in a new delivery system. The firm uses the Profitability Index approach to decision-making. The new system has a Profitability Index of 1.5. As a result

The Index is not acceptable and the project should be rejected

The Index is acceptable and the project should be accepted

Information regarding the cost of capital is needed to make a decision at this time.

None of the answers provided is correct.

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