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. $$\begin{array} { l l l l l l l }
\text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flow: } & - 250 & 75 & 0 & 100 & 75 & 50
\end{array}$$
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. $$\begin{array} { l l l l l l l } 
\text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flow: } & - 250 & 75 & 0 & 100 & 75 & 50
\end{array}$$
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. $$\begin{array} { l l l l l l l } 
\text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flow: } & - 250 & 75 & 0 & 100 & 75 & 50
\end{array}$$
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 Time: 012345 Cash flow: −2507501007550\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 250 & 75 & 0 & 100 & 75 & 50\end{array} Time: Cash flow: ​0−250​175​20​3100​475​550​

Compute the PI Statistic for Project X and Note Whether $\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 250 & 75 & 0 & 100 & 75 & 50\end{array}$