1 Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent.

2 Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for project are 2.0 and 3.0 years respectively

3 Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on the projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statitic for the project are 2 and 3 years, respectively

Project Z Should the project be accepted or rejected? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Use the PI decision rule to evaluate this project. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Should it be accepted or rejected? \begin{tabular}{lcccccccc} Time & 0 & 1 & 2 & 3 & 4 & 5 & 6 \\ Cash Flow & 1,090 & 90 & 510 & 710 & 710 & 310 & 710 \end{tabular} Use the payback decision rule to evaluate this project; should it be accepted or rejected