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A project has a discount rate of 14 percent, an initial cost of $99,200, an inflow of $56,400 in year 1 and an inflow of $75,900 in year 2. Your boss requires that every project return a minimum of $1.06 for every $1 invested. Based on this information, what is your recommendation on this project?

A. Accept the project because the PI is .90

B. Accept the project because the PI is 1.09

C. Accept the project because the PI is 1.11

D. Reject the project because the PI is .90

E. Reject the project because the PI is 1.09

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91548101

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