Fuzzy Badger Transport Company uses a WACC of 8% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's PI (rounded to four decimal places): 0.7036, 0.6730, 0.6118, 0.5506. Fuzzy Badger Transport Company's decision to accept or reject this project is independent of its decisions on other projects. Based on the project's PI, the firm should _______ the project. By comparison, the NPV of this project is _______. On the basis of this evaluation criterion, Fuzzy Badger Transport Company should _______ in the project because the project _______ increase the firm's value. A project with a negative NPV will have a PI that is _______; when it has a PI of 1.0, it will have an NPV _______.
a) Accept, $100,000, invest, will, less than 1.0, greater than 1.0
b) Reject, $100,000, invest, will, less than 1.0, less than 1.0
c) Accept, $100,000, not invest, will not, greater than 1.0, less than 1.0
d) Reject, $100,000, not invest, will not, greater than 1.0, greater than 1.0