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You are analyzing a project and have prepared the following data: Year Cash flow 0 -$169,000 1 $46,200 2 $87,300 3 $41,000 4 $39,000 Required

You are analyzing a project and have prepared the following data:

Year Cash flow
0 -$169,000
1 $46,200
2 $87,300
3 $41,000
4 $39,000

Required payback period 2.5 years
Required AAR 7.25 percent
Required return 8.50 percent

Based on the profitability index of _____ for this project, you should _____ the project.

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