You estimate that a project will cost $34,700 and will provide cash inflows of $14,800 in Year 1, 13,400 in Year 2 and $24,600 in Year 3. Based on the profitability index rule, should the project be accepted if the discount rate is 10.2 percent? Why or why not?

a.no, the PI is 0.87

b.yes, the PI is 1.87

c. none of the above

d. no, the PI is 0.92

e. yes, the PI is 1.23