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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 | 109 | 84 | 59 |
Which of the following is correct?
a.) 6.00%, reject
b.) 46.31%, accept
c.) 38.90%, accept
d.) 56.57%, accept
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