Question
Compute the PI statistic for Project Z and advise the firm whether to accept or reject the project with the cash flows shown below if
Compute the PI statistic for Project Z and advise the firm whether to accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent.
Time: 0 1 2 3 4 5
Cash flow -$1,000 $350 $480 $650 $300 $100
Please show work, thanks!
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
