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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%.

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

a) 2.41, accept

b) 0.023, reject

c) 0.90, reject

d) 1.97, accept

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