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10) Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below

10) Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent.

Time: 0 1 2 3 4 5 Cash flow: -75 -75 0 110 85 60

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