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