Question
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: | 75 | 75 | 0 | 100 | 75 | 50 |
Correct answer only please
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International Business Finance
Authors: Michael Connolly
1st Edition
0415701538, 9780415701532
