(PI

calculation)

Calculate the PI given the following free cash flows,

LOADING...

, if the appropriate required rate of return is

10

percent.

Should the project be accepted? Without calculating the

NPV,

do you think it would be positive or negative? Why?What is the project's

PI?

nothing

(Round to three decimal places.)Based on the PI

criterion,

the project should be

rejected

accepted

because its PI is

less

greater

than 1.00.(Select from the drop-down menus.)Without calculating the

NPV,

do you think it would be positive or negative? Why?(Select the best choice below.)

A.Since

PI=NPV+IO,

NPV would be negative if PI equals 0.792.

B.Since

PI=NPVIOIO,

NPV would be negative if PI equals 0.792.

C.Since

PI=NPV+IOIO,

NPV would be negative if PI equals 0.792.

D.Since

PI=NPVIO,

NPV would be negative if PI equals 0.792.

Click to select your answer(s).

Save for Later

Data Table

(Click on the following icon

in order to copy its contents into a spreadsheet.)

YEAR	CASH FLOWS
0	$55,000
1	10,000
2	10,000
3	10,000
4	10,000
5	10,000
6	10,000