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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 as follows

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

Time: 0 1 2 3 4 5
Cash Flow: -250 75 0 100 75 50

A.

-0.0977 percent, reject

B.

-9.77 percent, reject

C.

-24.41 percent, reject

D.

24.41 percent, accept

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