Compute the PI statistic for Project Q and advise the firm whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 12 percent.

Project Q

Time 0 1 2 3 4 5

Cash Flow-$1,000$250$180$420$300$100

• The project's PI is 11.70 percent and the project should be rejected.
• The project's PI is 8.70 percent and the project should be rejected.
• The project's PI is 3.70 percent and the project should be accepted.
• The project's PI is 5.70 percent and the project should be accepted.