Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
$$\begin{array} { | l | c | c | c | c | c | c | }
\hline \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\hline \text { Cash flow: } & - 75 & - 75 & 0 & 100 & 75 & 50 \
\hline
\end{array}$$

A)-0.0977 percent, reject
B)-9.77 percent, reject
C)-24.41 percent, reject
D)24.41 percent, accept

Question

Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
$$\begin{array} { | l | c | c | c | c | c | c | } 
\hline \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\hline \text { Cash flow: } & - 75 & - 75 & 0 & 100 & 75 & 50 \
\hline
\end{array}$$

A)-0.0977 percent, reject
B)-9.77 percent, reject
C)-24.41 percent, reject
D)24.41 percent, accept

Quizplus · Accepted Answer

The Answer of Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
$$\begin{array} { | l | c | c | c | c | c | c | } 
\hline \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\hline \text { Cash flow: } & - 75 & - 75 & 0 & 100 & 75 & 50 \
\hline
\end{array}$$

A)-0.0977 percent, reject
B)-9.77 percent, reject
C)-24.41 percent, reject
D)24.41 percent, accept

Compute the PI Statistic for Project X and Note Whether