Question
(PI calculation) Calculate the PI given the following free cash flows, LOADING... , if the appropriate required rate of return is 10 percent. Should the
(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 |
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