You would like to invest in the following project.

Sis, your boss, insists that only projects returning at least $1.06 in today's dollars for every $1 invested can be accepted. She also insists on applying a 14 percent discount rate to all cash flows. Based on these criteria, you should:

Multiple Choice

• accept the project because the PI is 0.90.

• accept the project because the PI is 1.04.

• accept the project because the PI is 1.11.

• reject the project because the PI is 0.90.

• reject the project because the PI is 0.96.