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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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