You are considering a project with an initial cost of $110,000, an inflow of $50,000 in Year 1 and an inflow of $84,800 in Year 2. If you require that your projects create a minimum of $0.08 for every $1 invested, what is your decision on this project at a discount rate of 10%?

• Accept the project because the PI is 0.05

• Reject the project because the PI is 0.05

• Accept the project because the PI is 0.10

• Reject the project because the PI is 0.10