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.
$$\begin{array}{l}
\begin{array} {| l | l | l | l | l | l | l |}
\hline\text {Time: }&0&1&2&3&4&5\
\hline\text {Cash flow:}&-75&-75&0&100&75&50\\hline
\end{array}
\end{array}$$
A) 10 percent, reject
B) 14.22 percent, accept
C) 13.26 percent, accept
D) 18.96 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.
$$\begin{array}{l}
\begin{array} {| l | l | l | l | l |  l |  l |}
\hline\text {Time: }&0&1&2&3&4&5\
\hline\text {Cash flow:}&-75&-75&0&100&75&50\\hline
\end{array}
\end{array}$$
A) 10 percent, reject
B) 14.22 percent, accept
C) 13.26 percent, accept
D) 18.96 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.
$$\begin{array}{l}
\begin{array} {| l | l | l | l | l |  l |  l |}
\hline\text {Time: }&0&1&2&3&4&5\
\hline\text {Cash flow:}&-75&-75&0&100&75&50\\hline
\end{array}
\end{array}$$
A) 10 percent, reject
B) 14.22 percent, accept
C) 13.26 percent, accept
D) 18.96 percent, accept

Compute the PI Statistic for Project X and Note Whether