what is the profitability index for an investment with the following cash flows given a 14.5 percent required return? 0 = -46500; 1 = 12200; 2 = 38400; 3 = 11300

a. .94

b. .98

c. 1.02

d. 1.06

e. 1.11

An investment has the following cash flows and a required return of 3 percent. Based on IRR should this project be accepted? Why or why not? 0 = -42000; 1 = 16500; 2 = 28400; 3 = 7500

a. No; The IRR exceeds the required return by about .06 percent

b. No; The IRR is less than the required return by about .94 percent.

c. Yes; The IRR exceeds the required return by about .06 percent

d. Yes; The IRR exceeds the required return by about .94 percent

e. Yes; The IRR is less than the required return by about .06 percent.