Compute the PI statistic for Project X and note whether the firm should accept or reject the
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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 the appropriate cost of capital is 10 percent.
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | -75 | -75 | 0 | 110 | 85 | 60 |
rev: 05_08_2019_QC_CS-167988
Multiple Choice
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34.77, accept
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1.46, accept
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10.00, reject
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60.50, accept
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