Sis, your boss, insists that only projects returning at least $1.06 in today's dollars for every $1 invested

What is the profitability index for an investment with the following cash flows given a 14.5 percent required return?        A.  0.94 B.  0.98 C.  1.02 D.  1.06 E.  1.11

71.	Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14 percent? Why or why not?        A.  Yes; The PI is 0.96. B.  Yes; The PI is 0.80. C.  Yes; The PI is 1.08. D.  No; The PI is 0.96. E.  No; The PI is 0.80.

72.

You are considering two independent projects both of which have been assigned a discount rate of 15 percent. Based on the profitability index, what is your recommendation concerning these projects?        A.  You should accept both projects. B.  You should reject both projects. C.  You should accept project A and reject project B. D.  You should accept project B and reject project A. E.  You should accept project A and be indifferent to project B.

73.

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:    A.  accept the project because the PI is 0.90. B.  accept the project because the PI is 1.04. C.  accept the project because the PI is 1.11. D.  reject the project because the PI is 0.90. E.  reject the project because the PI is 1.04.