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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 0 110 85 60
34.77 percent, reject 10.00 percent, accept 33.81 percent, reject 46.36 percent, accept
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