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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 6 percent.
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | -84 | -84 | 0 | 119 | 94 | 69 |
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Handbook Of Financial Econometrics
Authors: Yacine Ait-Sahalia, Lars Peter Hansen
1st Edition
044450897X, 978-0444508973
