Company is considering a $2000 investment in a project with the following predicted cash flows in a subsequent four years $1300 $950 and $700 and $300 it requires a 12% return what is the pro Profitability index for this investment and what does it suggest?

1. Because the probability index is 1.63 the company should except the opportunity

2. Because the probability index is 1.6 through the company should reject the opportunity

3. Because the probability index is 1.30 the company should except opportunity

4. Because the probability index is 1.30 the company should reject the opportunity