Question
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 8 percent.
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | -77 | -77 | 0 | 112 | 87 | 62 |
72.65%, accept
46.76%, accept
8.00%, reject
60.73%, accept
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
