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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
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 | 100 | 75 | 50 |
18.96%, accept
37.86%, accept
10.00%, reject
14.22%, accept
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