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Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. Project Z Time: 0 1 2 3 4 5
Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent.
Project Z
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|---|
| Cash flow: | $ 2,100 | $ 570 | $ 700 | $ 870 | $ 520 | $ 320 |
Should the project be accepted or rejected?
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